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One of the many pitfalls within which the new and wannabe traders fall into is the feeling that they need to be present and actively participating in the market moves all the time, as if the market will be running away and the moves that they will miss, would not present themselves again. This feeling being experienced by inexperienced traders will tend to make him stick to his monitor or terminal and eye the market as it develops tick by tick waiting for the next move to jump in. This in itself is not much bad as it forms part of the experience gathering process through which traders have to go through in order to become well acquainted with the market and how it unfolds. The problem comes when the trader think he should be participating in the market all the time and be present in the moves... Upon closing a long order, he will go short and the opposite also is true. By doing so, he will tend to over-trade his account and this will eventually produce a negative result on his progress and performance because overtrading kills both the account and the confidence of the trader as it stresses him to an extent and this stress eventually lead him to make more mistakes in his analysis, likewise, he also makes more and more bad trades ... of course, this will produce very bad performance... Overtrading is not the right way to go.. If you are doing it, you should start finding solutions of how to manage it, i am writing 'solution' because over trading is a problem which neither benefit the trader, nor his account.. the only one who benefit from this are the brokers because they win money regardless whether you win or lose your trades.
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