What Does Quality Over Quantity Means? 👶🏻

• In Business:

Businesses value quality over quantity. No matter which industry your organization belongs to, the way your business speaks determines how you attract your customers. The performance and sustainability of a business depend on the quality of either the services, products or the data that a business share

• In Life:

having the best or perceived best of something rather than a lot of cheap or less valuable versions. It also applies to relationships, friendships and life - why live 150 years if the life lived is of poor enjoyment and no substance.

• But, What About In Trading?:

... ?

Let's Identify The Problem 🤔

Trading in the Forex/Stock or any other financial market is a (group) of deals that an individual or an institution opens during a specific movement in the prices of financial markets. The amount of trades affects the end result.

The problem that many traders face in the market, especially new traders, is opening a lot of trades, which may make a trader think that this will enable him to protect himself from losing money, many traders believe that multiple deals/trades are a kind of protection, but this is not true Absolutely.

To open multiple deals, you need to analyze many factors. Each transaction needs to be fully scrutinized in detail separately. This will take you time, effort, and a lot of analytical thinking to see if the deal has a percentage of success. Firstly. So, whatever your knowledge and skill in the market, multiple transactions will cause confusion and distraction for the trader.

Multiple transactions leave behind many problems, whether they are psychological problems (such as dispersal) or practical problems (such as managing trades), falling into the trap of multiple deals will put the trader in a critical position to manage each deal separately, and of course this may bring many errors and confusion during Deal and risk management.

(Hedging) is one of the dangerous aspects that the new trader is ignorant of when opening multiple deals at the same time, the trader believes that stocks and Forex prices move randomly without correlation between them. This is a fatal mistake. Read more about the correlation here: Hedging Definition

Markets generally operate in a coherent (random, correlated) way, as the drop in one of the prices will be accompanied by a rise in other prices, and so forth, and this is called (correlation). Read more about the correlation here: Correlation Definition

So, What's The Solution 🤷🏻‍♀️

Stop over-trading ; In fact, over-trading may often indicate that you do not have a correct plan, strategy or management for your trades, and this in itself is a mistake that must be fixed as soon as possible. But if you have the plan and strategy, then you need to set a clear goal, ask yourself the following question:

How many trades do you (need) want to open in a day?

• 2? 5? 10?

By answering this question only, then you have set your daily, weekly, and monthly goals completely and systematically. If your answer is (2 trades) then your schedule will be as follows:

• 2 trades per day

• 10 trades per week

• 40 trades per month

Now all you have to do is stick to what you have specified and you have to understand that the number of trades will not protect your money but rather make you more likely to lose it, but what will protect your money is your success in managing deals , and you will not succeed with a stack of deals.

Summary 🤗

Of course I am not talking here about investment deals, if you are an investor there is nothing wrong with opening more than one trade per day as long as you will leave the deal working for the long term, but I am talking here to the daily trader who must enter and exit the market on the same day, so make sure to draw a clear plan that does not affect you negatively, but helps improve your psychology and your overall performance

And remember: (Less is the new more).

🥂

🙋‍♂️ Written by: @itsFiras ┊ 5/6/2020 - 03:27PM

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