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Why is overtrading not profitable?

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Many people trade in Forex like it is a game. They think they have understood the market and start trading with a huge amount of money. These are the group of people that are never successful. There are many misconceptions in this industry and one of the popular misconceptions is overtrading is profitable. We do not know how to say you but overtrading in this industry is very bad for your career. The more money you invest in the market without knowing the basic rules, you will lose all your capital. From the plain point of view, overtrading may seem rewarding. There is money everywhere and the quicker you can place your trades, the more money you are supposed to have. This changes when you start overtrading. You will find you have started losing your money and there is no way you can pull yourself together. Read this article to know the reason why overtrading actually shrinks the amount of profit of potential traders. It not only exposes you to high risks but also puts you in a losing position.

Those who are new to this profession might think this market is manipulated after blowing up their first account. But if you assess their past trade history you will be surprised to see the number of trade they have executed in each day. You need to come out from the concept by trading more you will be able to secure big profits. To be honest this statement is nothing but a myth in the retail trading industry.

As a new trader, you need to focus on the high-quality trade execution and proper risk management policy. Try to open a Forex trading account with the reputed broker like Saxo so that you know your funds are in the safe hands. Things will become extremely easy for you if know the proper way of trading. So stop wasting time on emotions and learn the fundamental of this market.

Overtrading needs you to place many trades at once

One of the many reasons this overtrading can be harmful to your career is it needs you to place numerous trades at the same time. We know traders need to focus on their trade one at a time. The more you analyze the trends and signals, you will find there is only one good trend to trade with. If you become greedy and start placing many trades, only few may win money but others will lose. You lose your attention and the trades lose their quality. Quality is very important in your trades if you want to become rich and successful in this volatile industry.

It exposes you to high risks

Forex industry is not very rewarding and most people do not have a happy experience with their performance. It is better if you communicate with the market as less as possible. The more you trade and expose your capital; the industry will have new ways to take away your money from you. The professional and seasoned traders never place any trades that are unnecessary. They only go for the certain trades to avoid high risks. Remember, the more trade you will place, the more risks you will have on your account. If the trades do not turn out as you have expected, you may need to close your account.

The profit is small in terms of the losses

Every trader has their turn in Forex and the successful traders also lose. If you have placed 10 trades on the market, you will find only 2 of them were successful. The remaining rest will incur a loss in your account and you will not make money. People only see the rewarding part but do not see the losing part of overtrading. It is suggested that you place one trade at a time with focus and attention to make your profit.

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