You’ve probably heard that professional advice that one shouldn’t ever over-trade. The question is, how much is it – to trade too much? Is it true that the less time you spend on the trade, the better? Must we stop trading as soon as the price reaches take profit or do we need to watch the market all day, so as not to miss a good deal?
Trading on the market is risky, and while some say that the less time you spend trading, the safer your profit, others argue that to earn something you have to be constantly in the market. It does not really matter who is saying what: how long, when, and why to trade will depend on your own trading style. And since all traders are different, only you can answer the question, how much time it takes to trade.
From my own experience, I can say that if you follow the price all day long, nothing good will come of it. If you just follow the market, sooner or later, you will succumb to the temptation to open a not very good transaction. Maybe you will have lucrative transactions either, but in the end you will lose as fatigue, boredom, fear and greed are bad advisers. We need to engage in parallel with something else, so as not to lose money.
I spend an average of 6 – 8 hours for trade, improving my skills. But I do not trade all the time, I divide the time that I spend on trade in 2 phases:
- Active trading (directly opening, monitoring and closing transactions)
- Education (analyzing charts, reading books, forums, blogs, news, and so on)
Whether you should trade in the morning or in the afternoon depends on the price movement. If in the morning there were large price movements, the session in the afternoon usually will be sluggish. Conversely, if the morning was monotonous, it is likely, in the afternoon you will see good movement. It is important to learn to tune in to the market, to feel the mood of the day. If you can learn it, then you will have no problem when closing a deal and getting out of the market.
Also, time spent at the trade depends on what day it is – trend or flat.
- If the day is trend, you ought to stay in the transaction as much as possible, and outstay short-term pullbacks. Such transactions do not usually require a lot of time, the main thing here is to put a stop loss and you can freely do other things.
- In the flat traders usually trade from one border to another. In such days trade takes more time, as there may be a few trades per day, as well as transactions require attention.
If we understand the nature of the market, the trade is easy enough. Of course, it’s impossible always to identify immediately whether the day is trend or flat, sometimes there are days when there are no transactions, the market needs time to determine the direction and nature of the movement. Do not be disappointed if you do not immediately get the hang on it, with experience come skill and understanding.
Each trader has his own strategy and approach to the market. Use your experience to make a profit. Remember, the most important thing is not the quantity but the quality. In the end, the main thing is not how much time you spend trading, but how much you get from it.
That’s all for now. Got any questions? Just ask the expert!