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Glossary › trade limit

Trading glossary · psychology

trade limit

A rule that sets the most trades you may take in a day, so you only pick your best chances.

The fuller meaning

A cap on the number of trades per day or week, used against overtrading. In a SEBI study of Indian intraday traders, 71% lost money in 2022-23, rising to 80% among those making more than 500 trades a year; a daily trade limit plus top-grade setups only keeps quality high.

trade limit.

Related words

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