Overtrading refers to excessive buying and selling of stocks by either a broker or an investor. A broker overtrades when they excessively buy and sell stocks on the investor’s behalf to increase commissions.
In Casinos, Every one starts playing with small amounts. But these both the winners and the losers will continue to gamble more than the average person.
Despite the fact that odds always favor the house. That loser always tries to recoup their losses. And after the loss to recover it fast they play a big game.
The same way when we discuss traders/investors When they lose in 2-3 trades in the market than to recover that, they bid for huge investments. And at that time only they stuck with the huge loss in the market.
On the other hand, winners set with the mindset, that if one time they got the success that means always success will follow them. That’s why they ride it all the way.
Same way when traders/investors earn profits from the market then firstly, they are unable to hold their profits because of their greed and emotions.
I know Why this is happening with every trader/investor? Let me explain to you because generally traders/investors take the decision on the basis of their last trade’s experience. If you faced loss then you become aggressive that this much profits you will not get if you hold… that’s why you book profits early.
and if you got profits, you set with the mindset like you got good strategy or advisor and I should buy big to make big profit fast.
Professional investors never behave like this as when they face loss they book their loss and wait for the next good opportunity. And when they earn, they hold it until the trend’s continue. They always keep following their Process – their strategy whether they faced loss in last 3 trades. They will continue with the same strategy in 4th trade.
This shows that they never do the over trading because there are so many traders who came with the good amount in the market but because of the greedy mindset they always do over trading and make themselves wipe out from the market.
And the fact is when you do over trading that means you are working with excessive amount i.e. if you have 1 lakh but your broker is providing you 5-time limits. Because of that, you never cared about your risk management and money management.
Due to this Problems, the Nifty millionaire has launched India’s First personalized Risk and money management platform – ProfitGyan. ProfitGyan can help you to diversify your risk as per your invested capital.
Along with risk management, ProfitGyan will help you to manage your money too. As it will give you the precise quantity according to your capital. Through which you can remove your one of the biggest fear i.e. losing whole capital.
Because when you are in the good mood, you will take huge quantity and if you are in bad mood then you will take very much less quantity. And as no one knows that which trade will give you whole years earning.
So this is how This platform will prevent your emotion to play with your mindset and your trading decisions. As it will prevent you to do overtrading.
Therefore every trader should have sound risk management and money management plan which can help them to manage their emotions and their portfolio.
*Professional investors/trader on niftymillionaire platform is Bindul shah. (Sebi Registered) Sebi Registration : INH000003663 (Bindul shah Sebi Registration : INH000003663)