Glossary › overtrading

Trading glossary · psychology

overtrading

Taking too many trades, many of them not in your plan, often because you are bored or excited.

The fuller meaning

Taking many trades that do not meet the plan, often out of boredom, excitement or the urge to be busy. Every trade adds costs such as fees and the spread, and weak setups drag down the average result; a daily trade limit and alerts instead of screen-watching help.

overtrading.

Related words

anchoring · boredom trading · chasing · cognitive bias · confirmation bias · consistency · cool-down rule · discipline · disposition effect · emotion