Taking Too Many Trades

- Modify criteria on entries to be more specific

- Add criteria on what and when to trade (only stocks with x volume or y momentum)

- Add set of rules only allowing x amount of trades

- Add element to entry criteria

Assume you’re a day trader using a support/resistance strategy. You find yourself forcing setups that aren’t there. Even when you are following your strategy, you’re taking way too many trades and not taking high quality setups. Here’s how you fix this:

1. Be more specific on entries

Change your entry criteria to where you’re only entering on specific support levels or add another criteria to only enter after a specific amount of volume is reached.

2. Add criteria on what stocks you’re trading

One possibility is to only trade stocks above x price. You could also only trades stocks with a certain range or when an indicator is at a specific price (RSI < 30).

3. Add a rule only allowing yourself a certain amount of trades per day. Use the “when” part of your strategy to only trade during specific hours of the day