How do you avoid trading out of boredom?

Boredom is one of the most expensive emotions in trading. Quiet markets produce pointless trades, and pointless trades produce slow, steady losses through spreads and commissions.

How do you avoid trading out of boredom? — bid-ask spread diagram
The bid-ask spread on a currency pair

What's your antidote?

  • rules about minimum conditions for a trade
  • non-trading activities that replace screen-watching
  • how you notice boredom creeping in before the damage
How do you avoid trading out of boredom? — risk-reward diagram
A risk-reward ratio of 1 to 2

The overtrading guide names the pattern and the fixes.

Comments

Log in to join the discussion. Comments follow the community guidelines.

Log in to comment

Loading comments…