Why Most new forex traders overtrade? what psychology and bias behind
Most new forex traders overtrade due to a combination of psychological factors and cognitive biases that drive them to make more trades than is prudent. Here are the key reasons behind this behavior: Here's an example of a Forex trader exhibiting overtrading behavior: The Impatient Trader: John is a relatively new Forex trader. He's been studying for a few months and feels confident in his ability to identify trading opportunities. He sits glued to his charts, constantly watching price movements. Every minor tick or blip seems like a potential signal to buy or sell. Emotional Triggers: John makes trades based on emotions rather than his trading plan. A small win fuels his confidence, and he jumps into another trade looking to replicate the success. Conversely, a losing trade frustrates him, and he feels compelled to make another trade immediately to "make back the money." Ignoring Trading Criteria: John loosens his trading criteria in an effort to find more opportun...