Over-trading in Forex is one of the most common reasons why most
Forex traders fail. In this article, we shall discuss some of the
reasons why traders over-trade and how to overcome them. The first
reason is Excitement. Many beginners become too excited and become
careless when trading. For example, your adrenaline is flowing and
suddenly the market spikes and the 5 ema crosses the 14 ema. As it is
doing so, you place your trade. Before you made the trade, you forgot
that your system relies on the bars being closed. Then the market turned
against you and you are now short. And so at the day's end, you have
made five trades to my one trade. It only cost me $30 while you spent
$150 for that same trade. So, learn to take a deep breath first before
making a trade. Forex trading should not be a gamble but an opportunity
to make some money.
