Trading psychology
Overtrading
Taking too many trades, often in choppy markets, out of boredom or to recover losses.
Why it works
Most of those trades have no edge. Spread, commissions and small losses add up, and decision quality drops with each one.
How to use it
Set a maximum number of trades per day and only trade setups from your plan. In a choppy range, the best trade is often no trade.
The typical mistake
Taking a trade every time the price crosses the moving average in a sideways market.
FAQ
What is Overtrading in trading?
Taking too many trades, often in choppy markets, out of boredom or to recover losses.
How do you trade Overtrading?
Set a maximum number of trades per day and only trade setups from your plan. In a choppy range, the best trade is often no trade.