How many trades a day should you take? Find your number from your own trades
Why more trades usually means worse trades, how to find your own daily maximum from your trade history, and how to stick to it.
“How many trades should I take a day?” There's no magic number that fits everyone. But there is a number that fits you, and it's already hiding in your trade history. Here's how to find it, and how to stop once you've reached it.
Why more trades usually means worse trades
- Your best setups don't show up every 10 minutes. The more trades you take, the more of them are B and C setups.
- Fees add up. Every round turn costs commissions and fees, and on small wins they can eat most of the profit. See keep your trading costs low.
- Your focus wears out. The third hour of screen time isn't as sharp as the first.
- Later trades are often emotional: winning back a loss, or pressing after a win. See overtrading.
Find your number from your own trades
Number every trade by its place in the day: 1st, 2nd, 3rd, 4th and later. Then add up the P&L for each group over at least a month. Most traders see the same picture: the first trade or two make the money, and the later ones give it back.
| Trade of the day | Trades | Net P&L |
|---|---|---|
| 1st | 22 | +$1,140 |
| 2nd | 21 | +$380 |
| 3rd | 17 | −$260 |
| 4th and later | 24 | −$910 |
In this made-up example, the trader's number is 2. Stopping after the second trade would have turned +$350 into +$1,520. Market Matrix's Insights shows this table for you as Trade number of the day, and flags it under Overtrading when your later trades lose.
How to stick to it
- Write your maximum in your rules: “Maximum 2 trades per day.”
- Plan your trades in Morning prep: the one or two setups you're waiting for today. Anything else stands out.
- When you hit the maximum, close the platform. Don't watch. Watching leads to “just one more.”
- Count all your accounts together. Two trades on each of three accounts is six trades of attention.
Track it
Test your maximum for 10 days, then compare your average day before and during. If the number is right, your days get calmer and your average day gets better.
This article is for education only and isn't financial advice. The example numbers are made up to show the math. Trading futures involves substantial risk of loss.