When I started out trading I thought I should be placing a lot of trades each day. Hedging one against the other. This frankly is simple gambling.
There are two ways of over trading.
You will quickly find out if you are spending too much on your trades. You will have hardly any account left and sometimes quickly.
There are various figures bandied about of 1% & 2% but smaller traders may be tempted to over leverage their accounts risking 5% and 10%, in fact one of the greatest traders traps is traders who keep moving stops down on a trade until they run out of money…and get stopped out. My average stop is 35 pips. I try and look for the last resistance/fib line +5 pops to the correct place (a 3 or 7 at the end).
Overtrading putting on too many trades
There really are not that many trades available. You might think there are but I only trade one or two a day, sometimes not at all on a Monday or a Friday, Mondays are setup days and Fridays are square up days. Beginners should not trade Mondays or Fridays on the whole.
The market will give you what you want, but if you are too greedy she will take it all away.
There are no forex secrets, just good business, you need to treat trading as a business and not an emotional event.
“Is this trade good business?, does the reward justify the risk?”
Anything else is just gambling and the markets will wipe you out. You will fall for hooks, square ups much more than you will make a profit unless you get these basic principles down.
I do recommend pro-act traders, I know $300US might seem a lot per month but you will actually find in one month of learning and using their charts you will make more money than a year of floundering around with the latest “indicators”. Indicator junkies don’t make money because they don’t know who is driving the market and what they are feeling at anyone time.