Could it be possible you are trading when a trading signal is not generated?
Absolutely. On many of my trades that don't work, when I study the chart later to see what I missed or why that trade did not work I can honestly state, "what on earth was I thinking?" I don't think there is a contradiction in my statements. The problem is one of perception, ideas vs facts. The signals are the facts. The belief that one must be actually trading to be "working" helps to create a set of beliefs about the market direction. The market is about to go higher, or go lower...that kind of inner talk. After a while of that, especially if you do it enough times and are correct, but did not take the trade, you can literally be blinded to the facts (signals) in front of you, or choose the facts that support your idea while neglecting to see those that would suggest otherwise. Then you take a trade and lose. You forced one. Pushed it. The belief became the reality for you for that moment in time and you act on it. Later when the pressure is off, frequently it is easy to look at it and say "what was I thinking?"
So yes, I am fully guilty of overtrading from time to time. I am working on getting beyond that, recognizing fully that solid discipline is critically important. That however, does not mean that the mind does not override the facts from time to time. It is limiting those times that is important, and eventually elimination of trading like that. I hope some day to be able to trade off the facts only and leave my emotional makeup on the sidelines while engaged in trading.
You have to put stops immediately behind you and get ready for the next trading signal, or you will not have a chance in this market.
I agree 100% and am improving in this area. Thanks for mentioning it though as it is important for all of us to keep in mind.
Your thoughts on profit exits are good ones as well and I appreciate you bringing them to this board. I hope you will offer other tidbits and thoughts from time to time as we all try to improve our success at this endeavor.
Best Wishes
-SE
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