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OverTrading

Overtrading is also the result of improper trade preparation. It’s difficult to overtrade when you begin the day fully prepared. Trade what you see not what you hear or feel during the day. Plan your trades and trade your plan. Prior planning can prevent and severely limit these problems. Overtrading as I see it is the essence of trading frustration. Trying to “catch” a good trade regardless of risk involved is the ultimate in trading suicide. Overtrading will greatly reduce your probability of success because you are trading without a plan.

The business end of the bible

biblealoneA Jewish businessman was in a great deal of trouble.
His business was failing and he had put everything he had into the business.
He owed everybody and it was so bad he even contemplated suicide.
As a last resort he went to a Rabbi and poured out his story of tears and woe.
When he finished, the Rabbi said, “Here’s what I want you to do”.
Put a beach chair and your bible in your car and drive down to the beach.
Take the beach chair and the bible to the water’s edge.  Sit down in the chair and put the bible in your lap.
Open the bible: The wind will riffle the pages, but finally the open Bible will come to rest on a page.
Look down at the page and read the first thing you see.
That will be your answer, that will tell you what to do.
A year later the businessman went back to the Rabbi and brought his wife and children with him.
The man was in a new custom-tailored suit, his wife in a mink coat, the children shining.
The businessman pulled out an envelope stuffed with money out of his pocket, gave it to the Rabbi as a donation in thanks for his advice.
The Rabbi recognized the benefactor, and was curious.  “You did as I suggested?” he asked.
“Absolutely”, replied the businessman.”
“You went to the beach?”
“Absolutely”.
“You sat in a beach chair with the Bible in your lap?”
“Absolutely?”
“You let the pages riffle until they stopped?”
“Absolutely?”
“And what were the first words you saw?”
“CHAPTER 11”.