One of the most common question which comes in the minds of the traders is that how much they should trade within a month.
It’s really hard to answer this question. The answer depends on your preference of trading and thinking. If you are trading for a long times and wants to trade more in a month it shows that you’re over trading.
How does this can be predicted ???
Involving for a long time in a trade doesn’t give you better results. But the more shocking about the over trading is that Traders don’t even remember how many trades they have traded.
Take out sometime of your busy schedule and think seriously, Try to analyze your trading style and the number of trades you have traded in the month.
If you do this activity you should be proud of yourself because there are very few like you.
The exact trade that a trader should trade in a month i.e. the decided trade is not always constant for very month. It can be decided on the practices that can help you to predict your trades.
So the first thing to remember is that even if you spend long hours on trading you should decrease your trading and choose only best quality over quantity.
The factors that will decide your trading rate.
The main thing that will indicate your trading every month depends on the time of trading. If you’ll spend the less time it will work faster than spending more time.
It will give you greater opportunities for trading. Having more opportunities doesn’t give always a profit. Getting more advancement in trading should not be mistaken by doing more trading.
More trading does not mean that more profits you will pull from the markets. The factor which is relevant is the nature of trading.
In the price action the trade continuously fluctuates for the longer time period based on the usual strategies and price patterns.
I always used to see longer time frames to trade the market than the lower time frame. There is usually more noise and more incorrectness in shorter time frames of the markets.
The number of trades in a month.
So what should be your number to trade in a month? Truly speaking it’s not one every time. There are many factors which have impact on the traders within a month but there will be only one number which will work for you.
It depends on your nature of trading and the market environment. If you trade for a longer time structure there is a rule that can be followed.
If you are involved in more than four trades in a 15 days then chances are higher that you are over trading. The longer time structure are basically nothing but the daily price action charts.
If you take an overview of a month then it comes to nearly 5-10 setups in a month. This is only in general and not a rule which every trader has to follow, it depends on your requirements.
My experience over the years have found that doing more than ten trades and getting involving in longer time structure will let you in a trouble, if you have involved yourself in so many trade setups in a month.
I focus on the quality trades in a month. If I get very few trades in a month still it’s ok . Don’t get panic to trade the market anyhow.
Just wait for the market to make it’s design and then enter into the market.
Doing less is enough in market.
Less you trade the risk is less and more profit is earned by the markets. As there has to be consideration of the other factors to gain a consistent profit, of which doing less trade is one.
By doing less trade you can have a better picture of risking your capital. After all this the first thing for the traders is to keep the capital safer and then making money.
How much risk taken for a single trade is most important.
Conclusion.
Instead of finding the trade setups daily desperately let the trade setups should come to you. wait and watch for the market to make the design first and then enter the market safely.
You will find high probability trade setups very few in a month. Traders are more panic to create the trade setups frequently or daily as per their thinking which might turn you towards failure.
Over trading is one type of bad habit which is hiding by our ego. Our ego will always tell us to do more and more trading to make profits.
But the truth is its better to sit aside for some time rather than risking yourself. Be practical in your thinking which will never let you to create a risk in your trade.
Happy Trading.
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