Stock Trading Tips - Avoid Over Trading & Under Trading Stocks

December 21, 2008

Stock trading tips below on overtrading and undertrading are key rules that must be followed if you want to increase your odds of remaining profitable as a stock trader over an extended period.

Whether you’re just starting out or you’re already an experienced trader, over trading and under trading are mistakes that can cost you money. Executing unnecessary trades, overtrading, will almost always end with a loss; while undertrading generally results in missed profit and opportunities.

Stock Trading Mistakes

Both over trading and under trading feed off of each other. If you’ve executed way too many trades where your losses have continued to increase, this will lead to under trading due to a lack of confidence. Remember, the object of trading is to be consistent, remain profitable, and limit your losses.

Over trading is one of the worst major mistakes that all traders constantly deal with, some on a weekly basis. It’s also something that is easy to do and get caught up in after missing several potential profitable trades.

Avoiding Over and Under Trading

The two articles below take a look at the mistakes of over trading and under trading stocks and how you can avoid them:

Over Trading Stocks

Under Trading Stocks

Remember, avoiding the pitfalls of over trading and under trading will help reduce your losses and increase your goal of accumulating profits.

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Written by Ben · Filed Under stock trading, trading mistakes