Psychology
What is Overtrading?
By the verify.trading team · Last reviewed · How we write
Overtrading is taking more trades, or larger trades, than your plan calls for, often out of boredom, frustration or a need for action.
Key points
- More trades than the plan allows.
- Costs and weak setups add up.
- Set a daily trade limit.
Overtrading explained
Costs accumulate with every trade, and lower-quality setups dilute results. A daily trade limit and a journal that counts trades against your plan make it visible.
Related terms
Related tools and guides
General education, not investment advice. Regulatory limits and prop firm rules change; check the official source. verify.trading provides records and analysis, not investment advice; trading involves significant risk of loss. Absence of a regulatory action is not an endorsement, and absence from a regulator's list is not proof of authorisation.