@Ashishupstox - I donāt appreciate the insinuation of this last reply. A trader that burns through their capital canāt trade anymore; I would much rather someone trade less frequently but profitably than frequently but unprofitably. Keep in mind, there isnāt a single way to trade: we have scalpers, day traders (ex: directional, momentum, statistical arbitrage), BTST/swing traders (ex: directional trades, non-directional trades, volatility arbitrage, event trading), and positional traders (ex: equity option writing, convergence trades).
What is consistently true about trading is that capital management, risk management, and emotion/impulse management are absolutely critical for long-term success. IMO, the kill switch isnāt a ātime for me to go home for the dayā button after Iāve hit some max gain or loss; this isnāt something to be used on a daily or weekly basis. I do recognize that there are at least two types of overtrading:
- āPushingā a few too many times after a good day (or a bad day to make a comeback).
- āSwimming against the tideā multiple days in a row when the markets donāt align with your trading tactics.
For me, the far bigger concern is the second one ā there is a huge difference between a suboptimal trading day and bleeding capital when the markets arenāt going your way. I am open to considering a different time period and we can do a research study in addition to collecting more data to determine which is the best. However, there is rarely āoneā best. What will be the best for the majority will unfortunately be suboptimal for others.