Some people think that to be a successful trader you need to be trading all the time. Not true!
I always knew this, but every once in a while I need a reminder. I found one such reminder recently in the great book "Street Freak - Money and Madness at Lehman Brothers."
In this Memoir by Jared Dillian, a Lehman Brothers trader, Jared relates how he made well over $100 million trading (most of that went to Lehman).
Regarding overtrading, Jared says:
"I had made, by that point, about $6 million simply day-trading S&P futures. After seven years, I had finally solved the mystery. Trade only when you have an edge. Otherwise, don't trade. Out of the first 125 market days of the year, I had traded on perhaps 10 of them, and made $6 million. I didn't have to be involved in the market all the time."
Something to think about, if you take 5, 10 or more trades per day...
