Glossary
Overtrading
What is overtrading?
Overtrading is taking more trades than your edge or plan calls for, often from boredom, the urge to act, or the need to make something back. It is usually a state problem, not a strategy problem.
Example
Nothing is setting up, but being flat feels like falling behind, so you open a position just to be in. By the close you have ten trades and no real reason for most of them.
Why it matters
Each extra trade adds cost and risk without adding edge. Overtrading is how a good system gets buried under trades it never asked for.
Common signs
- You trade when nothing actually qualifies
- Being flat feels like doing nothing
- Trade count climbs on red days
- You can't explain why half your trades were taken