Overtrading can be defined as: Taking a trade outside of your predefined trading plan. So simple yet so profound.
@thealternativecontrarian99368 ай бұрын
I thought overtrading was taking too many trades and overexposing yourself.
@lylel34718 ай бұрын
@@thealternativecontrarian9936if you have taken a lot of trades but they are within your plan then there is no problem your strategy just has a high frequency
@ScruffyWarlord8 ай бұрын
@@thealternativecontrarian9936not limited just to that
@connormcchicken59157 ай бұрын
your trading plan should include x number of trades. taking more than that is in itself breaking your trading plan@@thealternativecontrarian9936
@rimo17037 ай бұрын
this is where people have it wrong, it's taking trades outside your plan, you are supposed to take every variance of your edge, now the flipside to that is you can have your edge present but you know that it is a lower quality trade based on the conditions of the rest of the market or it could be that your edge presents itself in the afternoon when channels contract, everyone has to determine this for themselves & their own edge@@thealternativecontrarian9936
@Jaysnipes8 ай бұрын
I start giving money back if I start trading after 12pm. I'm realizing once I make my best trades early morning. I should stop, but when you have more money to trade with it's so tempting especially if you're really trying to still grow your account to that magic number.
@joshuaattractsmoney8 ай бұрын
That magic number…😂😂😂😭 Gotta be care about that one bro. But I feel you
@Jaysnipes8 ай бұрын
@@joshuaattractsmoney Indeed, careful. Hence, the caution I use now to avoid over trading, but by magic number I mean the right amount of leverage where trading profitably consistently could pay my bills. I earn 20% a week now. Been losing money for 3+ years. I'm trading with a small account. Just near 1k.
@kingmonteiro2 ай бұрын
That magic number will keep going up lol I'm guilty
@CosmicDeejay8 ай бұрын
I could listen to Lance all day. It always amazes me how much you have to say about a topic and how great of a teacher you are.
@mkehler818 ай бұрын
Leave it to Lance to summarize and address this huge issue in such a complete, short, and succinct way. Amazing stuff as always. Thanks!
@TheOneLanceB8 ай бұрын
Thanks for the kind words!
@markusthedrummer81438 ай бұрын
17 minutes is short?!
@DavidSkerritt8 ай бұрын
Great video Lance. I scalp the ES and with 12 years in now I know what price action I like and I know what I don't like. Today Monday I took one scalp and shut down about noon. Didn't like this type of action. Last Friday, the big bear day, that's my wheelhouse and so I hit that day hard. Once you get enough experience you know what you are good at and what you are not and you realize its O.K. to stop early or pass days you don't like. So I kind of look at overtrading like this, "Did I take too many trades given the price action that day".
@allenhall63196 ай бұрын
I trade ES as well. Your comment was well stated and helpful.
@CapitulationTrader8 ай бұрын
Thank you for spending the time to prepare, present, and upload this content to us trading wannabes on KZbin. Your videos are becoming one my most valuable trading tools. I have quotes from multiple presenters running through my head throughout the day and week. Here’s three that have become permanently ingrained. One is Mike saying if you don’t have a trading plan, he can’t take you seriously. A second was the exponential scaling when appropriate. And third was teaching that to become a better trader you must stop, right now, doing that one thing you know is holding you back. And then this, among others, presenting honest behavioral challenges and then offering solutions that traders struggle with every day. Thanks SMB channel
@BlessedAssurance9498 ай бұрын
Do you remember where you got the exponential scaling quote from? I'd like to go deeper on that one.
@CapitulationTrader8 ай бұрын
@@BlessedAssurance949 Yes. 4 October 2022. Titled ‘The Single Biggest Secret to Profitable Trading (Surprising)’. Best of luck in your journey -Michael
@BlessedAssurance9498 ай бұрын
@@CapitulationTrader Thank you!
@theone61897 ай бұрын
Man, sometimes you post EXACTLY what I need to hear. I am truly grateful for the effort you guys put into producing genuinely impactful and helpful content. I am sure many profitable traders, who may never trade a dollar of SMB Capital funds, have greatly benefited from all of the great videos uploaded over the years. Much thanks and gratitude, gentlemen.
@Zack-rr4hs6 ай бұрын
I can feel everything mentioned here in my bones. I've written all these but I could never present it so smooth and coherent. Bravo guys.
@Zir0738 ай бұрын
Absolutely loved this, especially the possible solutions presented. A LOT of people state the problems traders face but very few give immediately actionable solutions!
@marcdiliddo8 ай бұрын
Great subject. Many layers to this. Daily stop loss, give back rules, previous red day loss, 3 Red trades in a row step away for 30 mins. Focus on A+ setups when overtrading creaps in ..I do have a Overall temp in my DRC but going to add a better assessment of Emmotional Equilibrium. There are days when I haven't had much sleep, etc and as part of my DRC premarket game plan I write out keep it slow until I can assess my capability that day.. Great vid!
@Redhens3038 ай бұрын
Thanks Lance and SMB. Another well-conceived, timely and enormously helpful video. Overtrading is one of the “universal constants” in this business, killing PnL of amateurs and pros alike! I’ll add your notes to my “PlayBook”. Bravo!
@mmm-cake8 ай бұрын
Thank-you, Mike, Lance.
@bgz428 ай бұрын
You sold a copy of "The Playbook"... should be here Monday. Thanks again for the quality content you guys continuously provide.
@mbellafiore198 ай бұрын
I hope it adds value to your trading. If not...blame Lance
@TheOneLanceB8 ай бұрын
@@mbellafiore19bella owes me lunch now! If book sucks, always blame bella! :)
@Tradingwithjay6 ай бұрын
Thank you for making this clear to understand. overtrading has been the death of my P&L
@DJOOO8 ай бұрын
Really insightful ! For me over trading is also due to not saying no to poor set ups because there is not enough A+ set ups I was able to identify and say yes to …so I end up making less than ideal choices
@soprossok29108 ай бұрын
It is gold. Thank for sharing.
@vqfive5 ай бұрын
Thank you for saying your insight that we feel that overtrading is when we make a bad loss. Now I feel better that I'm not overtrading. It's just part of trading. You're not gonna win every trade as much as we want to. Your going to take losses and you got to accept that. What I find helps is to tell myself that there's going to be opportunities every five minutes. I scalp the 1 min chart. You don't have to get in every trade. You don't have to get every run. They'll be another run coming in the next ten minutes. I look at it like a wave when you're surfing. You might miss a good wave but you don't have to worry because there's another wave coming and another one and another one they just keep coming. I look at trading that same way. I don't have to get every breakout I see they'll be another one coming.😊
@JessicaKendal8 ай бұрын
One of the best videos you’ve ever done. DETAILS!!!! Love it
@Magnus-je3zk8 ай бұрын
Great video as always Lance!
@bossman19588 ай бұрын
smb the best trading content on youtube, thank you for sharing if not the furus will run wild
@mbellafiore198 ай бұрын
appreciate that @bossman!
@japaboston18 ай бұрын
Great video Lance. Thank you
@tj86xj8 ай бұрын
Amazing video! So many points really hit home for me. Thanks for taking the time to help the struggling traders.
@TheOneLanceB8 ай бұрын
Thanks for watching! Glad you found useful!
@john20978 ай бұрын
Excellent topic thanks for posting, got a lot out of it.
@joefeinstein68048 ай бұрын
Great advice as always, Lance - thanks!
@TheOneLanceB8 ай бұрын
Thx joe!
@lauragreco66278 ай бұрын
i took careful notes for every single point that you describes. Very, very helpful.
@TheOneLanceB8 ай бұрын
Love to hear it!
@thefishjerry45728 ай бұрын
I literally needed this thank you so much smb
@TheOneLanceB8 ай бұрын
Thanks for watching!
@ZxZ2398 ай бұрын
I needed this, thank you
@floooobzdagget37348 ай бұрын
Thank you Lance! 3 years in full time commons/options trader and dealing with these issues heavily still. My A+ plans are playing out as i planned, but my execution on borh entry and exits are emotion based. Aware of it but hard to rectify. As a software architect/AI developer you'd think this would be easy. It's 99% mental. It's like that scene in Neverending Story where Atreyu looks in the mirror at the oracle.
@TheOneLanceB8 ай бұрын
At the end of the day, we are human. That is part of being discretionary trader. Key is to find our best way of handling and using our emotions. Building systems to be our best discretionary self.
@lightkirsche8 ай бұрын
this video was made very well. thank you.
@jordanking56795 ай бұрын
You must have a resolve that places your mind and body into a willingness to accept pain. Have an uncompromising loss limit. If you have a profit target for the day, set a trailing drawdown on yourself. For example, if I’m targeting 600 for the day, and reach 500. If you proceed afterwards to give 200 back…stop for the day at 300 profit. It’s that simple and incredibly hard to do. Mark douglas would say if you don’t have predefined risk (how much you’re willing to lose per trade or per day.)…then you’ve yet to become the consistently disciplined trader that success unwaveringly demands.
@Fenix_Trader8 ай бұрын
Thank you! Always great videos ❤️🙏 When I want to trade but There IS no "playbook Set up", I demo trade, try / develope new strategies . That helps me not to revenge trade.
@eyev50858 ай бұрын
SMB capital contributed a lot of great insights in trading community. Thank you for all the dedication and knowledge you share to us.
@birenmistry99228 ай бұрын
I am going through this bad habit. Will help me a lot in future.
@jpthai30098 ай бұрын
Very good material to work on ..
@anyfoolcanknow8 ай бұрын
Tracking biometric data has helped my trading immensely. Also technical analysis on my PnL curve. The beauty of trading a single strategy and a single ticker is that it allows for specialization. Combined futures and options on a single ticker is hard enough. Improve one variable per day and keep those details straight and curated. Thanks SMB.
@TheOneLanceB8 ай бұрын
Love the tracking of data, super smart
@iirene7963tw8 ай бұрын
It is the psychological part that separates a consistent profitable trader and a losing trader
@nd-kay22 күн бұрын
Many thanks!!!😊
@JaeVoris27 күн бұрын
great video, instant results.
@joune036 ай бұрын
Thank you !
@angus39632 ай бұрын
Great video. I can't find it but in one of your videos you mention how you scale risk with new traders, what video was it in?!
@henriettatan3 ай бұрын
Excellent video 🙏🏼😇
@leimococ8 ай бұрын
The poker analogy with AK is spot on.
@TheOneLanceB8 ай бұрын
You know how much I love my poker analogies!
@hwnwhaler18 ай бұрын
Mahalo! This is gold for me!!
@traderryan7138 ай бұрын
Right on. Will refer back to it as needed. I dont have a playbook, but have a good idea on what i do... But thats not working anymore. So i need to invent a playbook now. I do have some horrible trading things i do... Im having trouble adapting for some reason. Im bout to boot camp myself though and fix it as im fed up. lol. ( i got the read, my execution is bad)
@iz04595 ай бұрын
I have done literally every bad trade he mentioned!!
@yoginacharya21508 ай бұрын
Awesome 👏 🙏
@DougSmileyVirgo2 ай бұрын
Use a paper trade account to do revenge trades. Many brokerages have them. Set up a mindfulness practice before the opening bell and check in with your higher self at mid day. Possibly take a nap from noon until 2:30 PM to let things pass over.
@ppwhub8 ай бұрын
Awesome video bro
@ROMAN-oy5ju7 ай бұрын
These vids are FIRE!
@jakeyxjakey18 ай бұрын
such a great video
@jjfattz8 ай бұрын
Losing was the cure for my over trading 😂
@LUKEMELIKIAN8 ай бұрын
good tips!
@GrizzTrades3 ай бұрын
Problem I found I had was I would trade my set up and most of the time go up. Then I would take a trade from being bored or greedy and I would go down. Then I would try to get that money back and go down even more then spiral.
@judevigor77992 ай бұрын
Great vid! Can you share the slides?
@abel89er8 ай бұрын
This should be heard once per week, at least.
@MrSmokinBeats7 ай бұрын
Rollling the dice (the boredom trade), lol, most common at midday, its like the man is sat looking over my shoulder...
@mattyraymytube1232 ай бұрын
to fix these bad habbits is to basically change everything about ourselves..for example if I get irritated In traffic I have to think if I can't be cool how will I be cool during a loss or a bad entry?
@matthewclarke50085 ай бұрын
Is it still considered overtrading if you have a very high reward to risk ratio but need to take a few attempts to get into the trade due to the tight stop loss?
@MorningViewz8 ай бұрын
I STILL love you.
@antonulybin3892 ай бұрын
Can someone tell me what "re-handicap the trade" means?
@pto19758 ай бұрын
I have cash account take 2 days to settlement. Good for me thanks
@sathishsankarachinthamani8148 ай бұрын
Thank you for the great video.
@christinamccarter88698 ай бұрын
Great video. I liked that you gave different examples for overtrading. I created a video about the addictive nature of trading a few weeks ago, and what, specifically, is occurring within our brains when we execute trades. I explore things like dopamine and operant conditioning, if you have any interest in watching it. I’ve also made video content for establishing good habits.
@MellowMusic18 ай бұрын
🔥🔥
@A3FIVE7 ай бұрын
God bless Lance
@skunkape59188 ай бұрын
❤
@mthxjzz64625 ай бұрын
R&D work?
@fangfang71018 ай бұрын
We get used to come to office and get paid for show up everyday, but trading is not like that! Trading is like a war, observing and seizing the best opportunity!
@haywood04578 ай бұрын
I’ve found at the end of the day, most issues come down to poor trust in self which causes psychological and emotional incompetence. The cure is actually simple: stick to your WORD. This is true in the Bible. All we have is our word. When you say the slightest of things but don’t do it, your subconsciously creating an individual in yourself you don’t even trust? Then you wonder why you’re overtrading even though you said you would do abc. Stick to your WORD.
@SF-fb6lv3 ай бұрын
Isn't 'overtrading' just reaching further and further down the 'trade quality playbook' hierarchy from 'great' to 'poor', to our detriment?
@iPissOnTalmud8 ай бұрын
To put it simply, you try hard, you die hard 😅
@tradergirlatx8 ай бұрын
True that. I am trying so hard to be lazy and just STOP and walk away after a great morning…. I hate giving it back because my brain turns off and I lose all fear (trading euphoria)/overconfidence).
@oceanblue23868 ай бұрын
@lance just tell the truth. Does @Mike ever roll up into the office with huge gold chains smoking blunts and blasting rap music trying to look like a baller and then you catch him trading GME all day ?
@mikenobles15158 ай бұрын
Max daily stop loss= Problem solved
@tradergirlatx8 ай бұрын
My problem is being up $3-6k and then giving back a chunk…..The max daily loss isn’t helping me because I forget to measure from CURRENT MAX balance….
@TheOneLanceB8 ай бұрын
@@tradergirlatxprecisely why max daily stop loss is not sufficient. Sometimes I have giveback rules where if I give back certain amounts from my highs, I’m done.
@irontrunk22678 ай бұрын
Biggest fix for overtrading is to blow up your account!