This is a Guest Post by AK of Fallible

AK has been an analyst at long/short equity investment firms, global macro funds, and corporate economics departments. He co-founded Macro Ops and is the host of Fallible.

AK speaks with Tyler of Macro Ops all about how important it is to avoid overtrading in the market. We also cover tactics you can use to prevent yourself from making this mistake. Make sure you watch the video above for the full conversation!

Jesse Livermore once said:

“It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight! It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I’ve known many men who were right at exactly the right time, and began buying or selling stocks when prices were at the very level which should show the greatest profit. And their experience invariably matched mine–that is, they made no real money out of it. Men who can both be right and sit tight are uncommon.”

This is absolutely true. As traders, we want to trade. All the time. But one of the best things you can do is actually… nothing. Once you’re in a trade, it’s important to let it play out without interfering too much. This is a very difficult thing to do. But that’s why being able to do it is so profitable.

There are a bunch of simple strategies you can use to prevent yourself from overtrading. The simplest is probably just putting a sticky note on your computer reminding you not to touch hit that buy/sell button.

To learn more, make sure you watch the video above!

And as always, stay Fallible out there investors!

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***All content, opinions, and commentary by Fallible is intended for general information and educational purposes only, NOT INVESTMENT ADVICE.