How to Fix Your Overtrading (Once and For All!)

[@pistolpete4736]

Overtrading can be defined as: Taking a trade outside of your predefined trading plan. So simple yet so profound.

[@thealternativecontrarian9936]

I thought overtrading was taking too many trades and overexposing yourself.

[@lylel3471]

​@@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

[@ScruffyWarlord]

@@thealternativecontrarian9936not limited just to that

[@connormcchicken5915]

your trading plan should include x number of trades. taking more than that is in itself breaking your trading plan@@thealternativecontrarian9936

[@rimo1703]

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

[@CosmicDeejay]

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.

[@theone6189]

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-rr4hs]

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.

[@mkehler81]

Leave it to Lance to summarize and address this huge issue in such a complete, short, and succinct way. Amazing stuff as always. Thanks!

[@TheOneLanceB]

Thanks for the kind words!

[@markusthedrummer8143]

17 minutes is short?!

[@DavidSkerritt]

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".

[@allenhall6319]

I trade ES as well. Your comment was well stated and helpful.

[@CapitulationTrader]

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

[@BlessedAssurance949]

Do you remember where you got the exponential scaling quote from? I'd like to go deeper on that one.

[@CapitulationTrader]

@@BlessedAssurance949 Yes. 4 October 2022. Titled ‘The Single Biggest Secret to Profitable Trading (Surprising)’. Best of luck in your journey -Michael

[@BlessedAssurance949]

@@CapitulationTrader Thank you!

[@marcdiliddo]

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!

[@Zir073]

Absolutely loved this, especially the possible solutions presented. A LOT of people state the problems traders face but very few give immediately actionable solutions!

[@Eatinwitjay]

Thank you for making this clear to understand. overtrading has been the death of my P&L

[@Jaysnipes]

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.

[@joshuaattractsmoney]

That magic number…😂😂😂😭 Gotta be care about that one bro. But I feel you

[@Jaysnipes]

@@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.

[@kingmonteiro]

That magic number will keep going up lol I'm guilty

[@bahlockayee]

Same here.

[@foley2k2]

Try long option scalps at 1-2pm if you see a reason to enter. Time stop, 15 min.

[@vqfive]

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.😊

[@DJOOO]

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

[@lauragreco6627]

i took careful notes for every single point that you describes. Very, very helpful.

[@TheOneLanceB]

Love to hear it!

[@Redhens303]

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!

[@bossman1958]

smb the best trading content on youtube, thank you for sharing if not the furus will run wild

[@mbellafiore19]

appreciate that @bossman!

[@bgz42]

You sold a copy of "The Playbook"... should be here Monday. Thanks again for the quality content you guys continuously provide.

[@mbellafiore19]

I hope it adds value to your trading. If not...blame Lance

[@TheOneLanceB]

@@mbellafiore19bella owes me lunch now! If book sucks, always blame bella! :)

[@eyev5085]

SMB capital contributed a lot of great insights in trading community. Thank you for all the dedication and knowledge you share to us.

[@Ericevans884]

I really do have a question. For someone with less than $5,000 to invest, how would you recommend we enter the market? I am looking at studying some traders and copying their strategy rather than investing myself and losing money emotionally. What’s your take on this approach?

[@AmeliaPurity]

I've been trading by myself. I'm not really happy with what's going on, just few weeks ago I lost about $7,000 in a particular trade. Can you help me out or at least advise me on what to do?

[@MichaelJames71]

I will advise you stop trading on your own if you keep losing. And i don't trade on my own anymore, I always required help and assistance from my personal financial advisor < Katherine Maggie >

[@GraysonMason749]

YES!!! That's exactly her name Katherine Maggie so many people have recommended highly about her and am just starting with her from Brisbane Australia🇭🇲

[@ChrisTunis-yd9zl]

Legend says "If you don't find a way to make money while you sleep, you are fated to die working" and it turned out to be true.

[@Lovethking-so8ew]

This sounds so good and I would like to be a party to this, is there any way I can speak with her?

[@birenmistry9922]

I am going through this bad habit. Will help me a lot in future.

[@henryfchi]

I was a loser trader after watched many times Lance every episode and learned precious lesson I trade for 30 days without a single losing day. Thank very much Lance

[@anyfoolcanknow]

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.

[@TheOneLanceB]

Love the tracking of data, super smart

[@bibbidi_bobbidi_bacons]

Thank-you, Mike, Lance.

[@joefeinstein6804]

Great advice as always, Lance - thanks!

[@TheOneLanceB]

Thx joe!

[@tj86xj]

Amazing video! So many points really hit home for me. Thanks for taking the time to help the struggling traders.

[@TheOneLanceB]

Thanks for watching! Glad you found useful!

[@floooobzdagget3734]

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.

[@TheOneLanceB]

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.

[@soprossok2910]

It is gold. Thank for sharing.

[@dleada5801]

I trade forex but these mindset videos are greatly appreciated, thank you.

[@battogtohchimdee4076]

Hey, i am visiting to this videos almost a year after, its so refreshing. I want to succeed in trading so bad that i don't give a F about my PNL anymore. I have been fighting overtrading for a while, but now i find myself "under-trading". I am missing setups that i should have taken. Could you make a video about these, or help me to find if there is one from SMB

[@thefishjerry4572]

I literally needed this thank you so much smb

[@TheOneLanceB]

Thanks for watching!

[@jordanking5679]

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_Trader]

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.

[@iirene7963tw]

It is the psychological part that separates a consistent profitable trader and a losing trader

[@john2097]

Excellent topic thanks for posting, got a lot out of it.

[@angus3963]

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?!

[@leimococ]

The poker analogy with AK is spot on.

[@TheOneLanceB]

You know how much I love my poker analogies!

[@vangilanteryan713]

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)

[@Magnus-je3zk]

Great video as always Lance!

[@iz0459]

I have done literally every bad trade he mentioned!!

[@antonulybin389]

Can someone tell me what "re-handicap the trade" means?

[@japaboston1]

Great video Lance. Thank you

[@JaeVoris]

great video, instant results.

[@hwnwhaler1]

Mahalo! This is gold for me!!

[@mattyraymytube123]

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?

[@ROMAN-oy5ju]

These vids are FIRE!

[@GrizzTrades]

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.

[@ZxZ239]

I needed this, thank you

[@nd-kay]

Many thanks!!!😊

[@judevigor7799]

Great vid! Can you share the slides?

[@sathishsankarachinthamani814]

Thank you for the great video.

[@SF-fb6lv]

Isn't 'overtrading' just reaching further and further down the 'trade quality playbook' hierarchy from 'great' to 'poor', to our detriment?

[@lightkirsche]

this video was made very well. thank you.

[@henriettatan]

Excellent video 🙏🏼😇

[@matthewclarke5008]

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?

[@JJTrades_X]

Losing was the cure for my over trading 😂

[@jpthai3009]

Very good material to work on ..

[@Yieldmax4Life]

Can SMB do a playbook video?

[@ademkarray]

Связка просто топчик, респект!

[@yoginacharya2150]

Awesome 👏 🙏

[@lexrexrob]

thank you

[@joune03]

Thank you !

[@pto1975]

I have cash account take 2 days to settlement. Good for me thanks

[@MrSmokinBeats]

Rollling the dice (the boredom trade), lol, most common at midday, its like the man is sat looking over my shoulder...

[@MorningViewz]

I STILL love you.

[@MellowMusic1]

🔥🔥

[@ppwhub]

Awesome video bro

[@JG-cj4db]

"Got a bad stock? Then take a walk"....Outside activities and exercise helps every time or time in nature reminds me of the bigger picture in life and not just thinking a single candle. Pretty dumb when you look back

[@A3FIVE]

God bless Lance

[@christinamccarter8869]

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.

[@mAthXjAzz]

R&D work?

[@haywood0457]

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.

[@LUKEMELIKIAN]

good tips!

[@fangfang7101]

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!

[@abel89er]

This should be heard once per week, at least.

[@skunkape5918]

❤

[@foley2k2]

I'm prone to over trading - that was yesterday after a $1550 loss. I turned the day into about -$120 or -0.86%. +$1024 today. Day 12. 11/12 days green. Best trade today was using $468 to make $300+. I like very tight risk/reward, but high leverage on those.

[@iPissOnTalmud]

To put it simply, you try hard, you die hard 😅

[@tradergirlatx]

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).

[@oceanblue2386]

@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 ?

[@wallstreets7357]

Probably wasted 400k over the years overtrading

[@helovesmankind]

Are you profitable now? Im in a similar boat.

[@mikenobles1515]

Max daily stop loss= Problem solved

[@tradergirlatx]

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….

[@TheOneLanceB]

@@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.

[@irontrunk2267]

Biggest fix for overtrading is to blow up your account!