Avoid overtrading and chasing losses from "summary" of How to Day Trade for a Living by Andrew Aziz
Overtrading and chasing losses are two common pitfalls that many day traders fall into. Overtrading refers to the act of making too many trades in a short period of time. This can happen when a trader is trying to make up for previous losses or simply gets caught up in the excitement of the market. However, overtrading often leads to poor decision-making and can result in even greater losses. It's important for day traders to stick to their trading plan and only make trades that meet their criteria. Chasing losses, on the other hand, occurs when a trader tries to recoup money they have lost by making bigger and riskier trades. This behavior is driven by emotions like fear and greed, rather than a rational analysis of the market. Chasing losses is a da...
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