Trading psychology

Overtrading

More trades rarely mean more profit. Learn to see busy days in your own data.

4 minute read

Overtrading means taking trades that are not in your plan because you are bored, impatient, or trying to hit a daily target. Costs add up and quality drops.

Find it in your data

  • Compare days with twice your normal number of trades against normal days.
  • Check the win rate of your third, fourth and fifth trade of the day.
  • Look at commissions and spread as a share of your profit.

Fixes that work

  • Set a maximum number of trades per day.
  • Only trade your best sessions.
  • Write the trade plan before the session and trade only what is on it.

Your weekly review counts days with far more trades than usual as overtrading and shows them in the process score.

Check yourself

What usually happens to trade quality on very busy days?
Which rule directly limits overtrading?