[00:06] what is stop loss? Why should we use end stop loss ? How important is a stop loss for a beginner trader? But a big mistake was revealed there. And that mistake happens again and again, I ask my brother, brother, tell me [00:19] how many trades should we take in a day? You should take as many as you can. You should take as many as you can. This is the biggest mistake of a beginner that he thinks that he should take as many trades as possible in a day, that is, over [00:32] trading. And today's topic is going to be exactly And for those who don't know about me my name is Dinesh Krola and you know I am a stock burner and myself Arjun and I am 17 years old and I am new in trading. I [00:47] like you guys [music]. So if you are a beginner and want to learn trading from zero then for you because through this series I am teaching trading to my younger brother. From Zero to a Profitable Trading Journey. If you want to learn trading for free then there can be no [01:02] Because at the level at which I teach trading to my brother, maybe I can teach it to someone else at that level. So make sure to watch this series completely if you want to learn trading completely within the next 6 months. And make sure to [01:14] subscribe to this channel. Hit the bell notification button so you don't miss out on any upcoming videos [Music]. And if you guys are beginners then comment beginner so that I can also know how many beginners are watching this series and [01:26] Ok? So our topic today is going to be , trading but they end up over trading. [01:39] We learned about stop loss. Overtrading can lead to bigger losses if you do n't understand. In this we will cover what is over trading? Why do beginners they overtrade again and again? Then after that we will learn [01:52] overtrade, how much damage do we suffer after that. After that we will learn professional approach. How a professional trader works in the market and controls overtrading. That means he does not over trade. Then we will [02:05] see what quantity versus quality is. Here the game of quantity and quality is very important in trading. And we will talk about some rules trading can be controlled. Because unless we set rules, [02:18] over trading cannot be controlled. Ok? So the first question will be to my brother that brother, tell me how many trades I can take in a day. Why does it feel like this? Because the [02:30] trade should be taken wherever the setup is being formed. more trades mean more profit. The more profit. The more profit. Oh my God. Guys, [02:43] this is the biggest problem of beginners. They believe that the more trades, the more profit they will make. Place trades at the places where you get as many setups as possible. That means the more we trade, the more our profit will be. This [02:57] is a beginner's mindset. Right? Which is the worst mindset. If you work in the market with this mindset, you will definitely suffer a loss. That is, what does over trading mean? You have [03:15] not know that in a day I have to take two trades, three trades, five trades, 10 trades, 50 trades. No one knows. All they know is to take the trade. But one does not know how many trades to take. That [03:27] means, unless you know how many trades you have to take in a day, Over trading. Over trading. Do you know how many trades to take in a day? I take as many as I can. He [03:41] he does not know how many trades we take in a day in trading. This means that unless you know how many trades you need to take, you are simply overtrading. That means over trading simply means [03:53] unnecessary trading. That means trades that have no logic behind them do not make any sense. But still you are taking trades thinking that the more trades I Unnecessary trading is equal to over trading. Now let us understand [04:07] why beginners overtrade? Beginners overtrade due to four major reasons. What do you feel when you sit down to trade ? Today we have to earn money in the market. Today we have to earn money in the market. That means there is excitement. Yes. As long as [04:21] you have too much excitement about trading, overtrading will occur. The second is foam. I don't know the meaning of FOMO. I do n't know the meaning of FOMO. This is called fear of missing out. That means when we are trading in the market [04:35] , once the charts come and sit in the market. The market goes up. We feel We have not taken a trade here. Or we are missing it. The profit that we should have made did not come to us. We try to get into it at the top when it goes out. [04:48] fell down. We were not even in When it reaches the bottom. That means fear of missing out. How did we miss this trade, this move? We should not miss this move. With this thought in mind, we [05:03] want to capture every move. Ok? When the market is going up, I have to buy. It is going then it is going up, have to do buying, then it is coming down, have to do selling. That means n't want to miss out on any move. That is called FOMO. Every beginner [05:16] FOMO inside them. Then comes then what will you do ? I will take another trade against him. The second one will take the trade. Why will he take it? That loss has occurred and it has to be covered. That has to be covered. There has been a [05:30] loss and it has to be covered. That means what is he taking? It is called revenge. And as long as you keep doing revenge trading in the market, it will lead to over trading. Then comes boldum. What does boldum mean? What happens? [05:44] They don't know boldam. Boldum means boring. You wo n't enjoy it unless you place a trade. You will not feel this excitement and you will become a beginner wants to fall prey to boldom. He wants that my friend, I should not enjoy going to the [06:00] market. There is excitement. I should feel something like, friend, I am a trader. I should place my trades. My trades should be on the chart. So that he does not get bored in the market, he does unnecessary trades. Due to which he ends up over [06:16] first is excitement. Every beginner has an excitement that he wants to trade. Come on, it will be fun. You will get a chance to earn money. I will show it to my parents, my Look, I have become a trader. I have come to trading. Second is fear of missing [06:29] out. When we sit down to trade, then we do not understand how to earn money, so we because we see every move being missed, so we want to capture everything. Thirdly, when losses start happening, they start revenge trading. And when it comes to [06:42] sitting, let's sit now, we are not able to sit in the market range. It becomes boring and unnecessary trades start getting placed. Due to which beginners have to over trade. Beginners tend to over trade. [06:55] What does overtrading mean? Losses losses. Over trading means loss i.e. your account becomes zero. So no matter how much stop loss you place. If you over trade, your account will be wiped out. Now let's talk about the damage caused by overtrading. [07:10] brother? More stop loss hits. That means when you trade more, make more trades, then the number of stop losses will also be obviously hit. Will be a hit. This means that your stop losses will be hit more often. And when your stop losses are [07:24] hit, you experience emotional stress. Do you know what emotional stress is gone, second time the trade was taken, SL was gone , third time the trade was taken, SL was gone, fourth time the trade was taken, SL was gone. Brother, why is this happening to me? [07:38] Why is the market going against me? Does the market have any enmity with me? and you will say that brother, how is he making profit? Why is it not happening to me? Does the market know where my stop loss is? Does the market [07:51] This means the market is setting it up. And then what will you start doing? When you are emotionally stressed and you feel that the market knows where my stop loss is. Emotional trading and stop loss will not be used. Will [08:04] not apply. Why? Because you started feeling that brother, the market has understood where my stop loss is. But you did not understand that the more you overtrade, the more your stop loss will be hit. The more the stop loss is hit, the more [08:17] emotional stress you will feel and you will start considering the market as an enemy. You will start thinking that the enemy is my enemy. But the market has to give you the money. He will not give it to anyone else and he did not call you. You yourself went and you yourself considered him your enemy. [08:30] Just because you got emotional stress. And what will happen after that? Confusion means that you will not understand what is happening to me, exactly what do I have to do in the market, you have to learn and work in the market, [08:44] but when you do not learn and work, then this type of confusion is created and because of this confusion you only suffer loss. The fourth capital loss that I talked about is loss. This means that the more stop losses are hit, the [08:58] more emotional stress and confusion you will face and ultimately you will lose your capital. Ok? So these are some of the major damages that you suffer due to over trading. Any questions? So how does a professional trader [09:10] avoid overtrading? How does Avoid do it? That is, how does a professional trader work in the market ? Is there a professional approach ? Professional trader. First thing is less trade. What will happen if I trade less? There will be less losses. There will be [09:23] less losses. There will be fewer such delays. You have taken 10 trades, right? And out of 10 trades, seven or eight of your SLs went down. Then there will be a big problem. That's what SL went into one of the two, will there be any problem? Will not done. Will there be any [09:37] Next Day Trade. That means a professional focuses on reducing the quantity of his trades. That means he should not take too many trades. Take fewer trades. Second sectioned setups. Selected setups means that he will [09:53] work only on specific setup or strategy. Do you know what strategy is? Do n't know. So we will talk further. Selected setups means that he should rely only on what he has read, understood and learnt in the chart and [10:06] work only after looking at that thing. Unnecessary Noise Someone gave a call tip. Right now you people are starting many tradings. You will be drawn to the call tip advisory. You started taking trades from there. Someone gave global news that now [10:19] Iran is going to do something. USA is about to impose a new policy on Iran. This kind of thing is going to happen. You started selling in the market on that basis. You got news from somewhere that brother, gold is going to fall. You did something there. Some professional [10:32] YouTuber like me told you to do this and that. You did that. That means there is no perfect personal thing for you that you see in the market. You are trading based on what the market is showing you rather than what someone else is telling you. So this means [10:44] you will lose. So how does a professional trader work? That selected one avoids all the noise. He work? That selected one avoids all the noise. He Third, clear rules. Clear rules mean that your rules should be properly written. [10:59] And a professional trader follows only the written rules. Rules like for example first he made a rule that I will take only two trades a day. I will take a trade in the morning. I will take a trade in the evening. Talking about crypto market work, [11:11] I will work only Monday to Friday. I will not work on Saturday and Sunday. I will have a $5,000 SL on one trade. The target I would set is $15,000. What did we make? What will you say to them? [11:25] rules. What will happen when you follow them ? Discipline will be created. This means that over-trading will be reduced. But if you trade anything unnecessary then you will be overtrading. So professional traders have clear rules. And no [11:37] forcing. No forcing means that a professional trader does not trade forcefully. Do you ? Let me show you my chart. I now have a trade running on my chart. Now this trade has been on hold for the last one or two days. Now you know [11:52] what could have happened? How many trades could I take here ? So how many trades would you have taken in this range? If I leave it for one hour, I can do it in 5 minutes. I can do it in 5 minutes. How many trades would have been made at your place? At least 10 are [12:05] imagine he thinks of taking 10 trades here. There are 10 trades in this place but we have been sitting with just one trade for the last two days. And I am sitting on the trust that yes, I do not have to trade unnecessarily forcefully. I will [12:19] not go into the market to make money forcefully. When the market moves out from here, it will take out the range and either the SL will go down or up, I will get an opportunity, but if I enter something unnecessary in between to trade something unnecessary, then I will incur losses, so [12:33] professionals do not trade forcefully in the market, they I trade cryptos, right now I have taken the trade of Ethereum, whoever wants to trade, wants to start, wants to open an account, [12:48] Delta Exchange in which you trade derivatives of cryptos, that is, you trade futures and options and whoever wants to trade the Indian market, is Dhan, the link of which you will find in the description box. You [13:01] can open your account there and start trading in the Indian market. Ok? Now let's talk about quantity over quality. What did you understand by quantity over quality? Quantity take only two trades. Instead of 10 trades, I should take only two trades. [13:16] This will reduce losses. Losses will be reduced. This means that over-trading will be reduced. The most important concept is how to reduce overtrading. What kind of mindset do we have to build up? We have to see that we need quality [13:29] over quantity, that is, the higher the quantity, the higher will be our number of trades. I am taking 10 trades within 1 day. This means that within a month we had almost 300. We made 300 trades within a month. Now think for yourself that brother, [13:43] you have to take 300 trades in a month. Now you have SL in 300 trades continuously. Will you No. Will not do. Why? SL was run continuously in 300 trades. Let's move the SL in the trade to 200 instead of 300. Then he will trade or not. [13:59] Go for 200 trade and your SL is gone for 100. He will not do it. No, it is possible that he may do it. It is not like that in 100 trades, friend, that means in so many 100 trades continuously, SL is going on, it will work when it goes in between, [14:13] but if it goes on continuously then it will not work, it will not remain, then the capital will not remain, that is, for example, you are taking 10 trades in a day, there are 300 trades in a month, now I am saying that you make loss in 100 trades of a month, [14:25] you have loss in 100 trades. Right? Now such a situation has arisen in the market that these 100 trades have come continuously. What would this mean ? That means your 100 trades will be back to back SL SL SL SL [14:40] SL. Think for yourself that when SL is applied in your 100 trades, will you feel like investing money in the market again? No. Would you like to open the screen again means your hope will be lost. Your motivation will be lost. [14:55] All your excitement, all your influence, will all become zero. And you will not participate in the market again. If you focus more on quantity. more trades I take, the more profit I will make. If you [15:08] work with this in mind. That's what I'm saying, take quality trades. Quality trades take quality trades. Quality trades means 30 per day or 20 per month because Indian market is open for 20 days, so 20 otherwise 30. So in 20 or 30 trades, [15:23] if this happens in 10 trades back to back, will he survive? Yes, he will survive, you will understand. Now, instead of back to back losses in 100 trades, back to back losses in 10 trades is better. I am telling you the worst to worst condition, if for example, your [15:36] trades, SL goes in 15 trades, but the worst condition is such that those 15 trades continue, okay, then you will be able to survive there, you will be able to manage yourself, you will be able to hold, you will be able to understand the market that you have to take one trade in a day. [15:51] One trade means one decision. 10 trades a day means 10 decisions. 10 decisions. So now tell me that you have to observe the entire chart during the day. Have to see and take a decision. And there you have to take [16:04] 10 decisions in front of the screen in a day. Which day will be better for you? A decision A decision maker. Because I am getting time. Analyzing and taking a decision. I am The analysis is not going that well. But for 10 trades, there was a lot of up and down, up and down. [16:18] So 10 decisions have to be taken. Now there are 10 diseases and time is required between each disease. So your chances of making mistakes in those 10 diseases will be very high. So this diseases will be very high. So this is over trading and over trading means that [16:31] play in quantity, you only suffer losses. As soon as you start shifting to quality. Brother, I will take only one, not 10, but I will take a good one. There will be only 20 or 30 trades a month but they will be good. What is the benefit? How do [16:45] you benefit when you take quality trades of the month ? I mean, I will show you how you survive once on the screen. So here just for motivation so that you understand that yes, you have to work on quality. There is no need to pay on quantity [16:57] and there is no need to over trade. This is a trade. Ok? If you take it to 30 days, you will see some profit numbers here. But look at the number of trades in the crypto market within 30 days when we trade. The number of trades here is 50. Out [17:10] of 50 trades, I would have taken mostly around 15 to 20 trades. The remaining 30 trades are done live by Akash and small legs of selling and trading. The main trades will probably be only 20 or 15 trades. [17:25] Now think, within a month, the crypto market which is open 24*7 365 days is open all day long and only 20 trades in 30 days and what happened at the end? He is leaving after giving us some money or the other. But where we start over-trading, where we [17:39] start doing more trades, we will start incurring losses. So I hope you have understood whether we have to focus more on quantity or more on quality. So tell me what will you focus on? Quality pays. Ok? [17:52] Quality is understood. So quality means that you have to find good trades. Not finding many trades. If you look for more trades, you will incur losses. So any doubts? There are rules. Some rules to control some over trading? Yes. [18:05] To control this over trading, you have to follow some rules so that when you trade from tomorrow or when you start trading, you do not do too much over trading. Ok ? For that we go to another board and understand there what exact [18:17] rules we have to follow. So rules to avoid over trading. The first and simplest rule is no setup, no trade. That means, unless you have a setup, unless you see something that you have tested repeatedly in the market and you have done [18:32] back testing on it and you know its result as to how it performs, then you should not enter unnecessary trades in the market. Secondly, when you are coming to trade in the market and on the day you are sitting to trade in the market [18:44] , then you decide how many trades you will take. Maximum trades you will take. Maximum Take a maximum of three trades because taking four, five, six trades after three is [19:00] unnecessary trading. Ok? Then comes after that when your SL is hit. When your stop loss is reached. So for example, you planned three trades. you have obviously come into three trades so that all three of my trades can work. But it may happen [19:13] that your trade does not work. Isn't it ? Now it may happen that your first trade did not work out, and the second one also did not work out. So when your two SLs are placed back to back, when your two stop losses are gone, close the trade on that day. Because either you close it [19:29] close the trade on that day. Because either you close it or you reduce the quantity in the third trade. Because you know what a lot of people do? When you planned your three trades, you incurred the loss, SL in the first one, AS in the second one. [19:41] increase the quantity in the third one. I will increase the quantity. Why will he increase it? The loss will be covered. They start taking revenge i.e. covering the loss. So, there is no need to take revenge. You will go to take revenge and then you will get trapped in the same trap of over trading. [19:55] Ok? So, you should try to either Fourth, fix your losses. That is, how much loss can I incur in a day [20:08] bear. For example, if you started trading with a capital of Rs 10,000, then started trading with a capital of Rs 10,000, then try to make a loss of Rs 1500 in a day, okay, my loss should not be more than Rs 1500. That means your loss should be fixed. [20:21] your loss should be fixed. Trade at ₹500 500 500 If you have a bad day in all three trades in which your trades did not go well, then ₹100 1500 i.e. trade at ₹500, that means your [20:35] trade stop loss is also fixed and daily loss is also fixed. When your daily loss limit is hit, close the system for that day. Ok? And at such times when you have to trade inside the market, try to trade when there is direction in the market. [20:49] When there is momentum. There is momentum. When the market is moving, making higher highs, lower lows, whether it is higher high or lower low is known or not. I will explain it in the future. When you see direction in the market, [21:03] market is moving up or falling down, try to trade in that direction at that very time. The market is stuck in a range, with resistance above and support below. Stuck in the middle of this. Avoid it. There is no volume. The [21:15] market is stuck in a range and going nowhere. Avoid it. Because at this sell, buy, sell, what will happen ? At the end it will be over traded. So there is a simple rule. Do not take any trade until a setup is formed. Meaning that [21:28] no setup is created on your strategy, no trade is to be taken. The second is to limit the number of trades. Take control. Try to reduce the quantity of stop loss in the third trade if these trades go back to back to your SS. That [21:44] loss which should happen but the trade is fixed and the day is also fixed. If that is hit the system closes. Then when you are trading, try to trade directional markets. Do not trade range bound markets. Ok. Did you understand this thing? Any doubt? [21:56] My doubt is that you just said strategy, no strategy, no trade. Yes. So what is the strategy? I have to learn the strategy now and start trading from tomorrow, so I need a strategy. Strategy is needed. So guys, this brother [22:08] needs a strategy right now and he wants to trade on this strategy. But he still does not know that he has But he still does not know that he has Before moving on to the strategy, we will have to learn a lot of technical concepts about [22:22] What is support resistance? What is a trend line? What are indicators? And how do we build up a strategy for ourselves using indicators price action Ok? Before that, let me tell you once on the screen [22:35] and how those topics are benefiting you till now. So brother, among the what was the first topic we taught? What is trading? What is trading? That is, what is trading? Those who start trading should at least know [22:48] how to buy? How to do selling ? What is it called when you sell high and buy low and sell high, What topic did we cover after that ? Why 90% lose money? Why 90% lose [23:02] money? That is, why do 90% of traders lose money? I am giving you a reality check that you should understand that 90-93% of people make losses in trading so that you can take your next step thoughtfully. Ok? Then you thought that we will learn trading and then do it. [23:16] covered? How Chart Works. How Charts Work? That is, how is the candle, which is the smallest unit in the charts, formed? What does it do? How does he what was our next topic? How much money do you need? How much money do you need? Now I [23:33] know about trading. I know a lot of people lose. So how much money should I invest to how much capital you can start trading. Then what did we read after that? What is stop loss? What is stop loss? When you are starting trading. [23:46] excitement is very high. But still you are starting so I have already taught you one topic ? So that the first thing that comes to your mind is that yes, I have to use one thing first in trading. What should I use that for? Stop loss. Stop loss. [23:59] Capital will be saved. What is the topic covered in today's video ? Overtrade. Because when beginners start trading, I know that while watching my videos you are also starting side by side trading, so you should [24:12] I told you some rules and made this video for you people so that it becomes over trading and how can we control it. So, whatever topics I have covered here till now, I have covered them in such a way that [24:27] if you get influenced and motivated towards trading, you understand that yes, things are possible through trading. Through trading we can achieve such a life that our dream can become our reality through trading. So even if you are starting, [24:41] I know there is a complete series of 6 months. It is very time consuming. It takes time not have patience. Let's start straight away. So I started by building up a mindset for them so that they could understand what trading is. We should [24:55] also know that people lose capital money here. What is the use of stop loss? How much money do I need to invest to start here? What is a candlestick in a chart? And how to control over trading for a beginner. Ok? So with this much knowledge, at [25:08] least when you try to invest some money in the market in the beginning, then you should know all these things. How do we proceed now? Now our technical chapter will start from here. This means that a very [25:20] interesting part is about to come. Are you ready brother? Yes. Technicals. We will learn the meaning of technicals and What are chart patterns? What is support resistance? What is supply demand ? What are indicators? [25:32] Based on all this, we have to analyze the charts and plan our trades. Ok? And so that we [25:45] you do not miss out on the next episode because our next upcoming episodes are going to be amazing, which is the basic need of every trader, he will have to learn it and strengthen the technical part if he wants to do [25:58] trading i.e. understand the market. Ok? Rest of the people who are able to help you then make sure to like this video. Like the series and all the beginners out there, please comment so that we can understand [26:11] help them in learning trading. See you in the next video. Till then by-b see you. Jai Hind.