Overtrading

Trader's Glossary · Psychology

Overtrading

Definition. Making more trades than the plan calls for, often out of boredom, frustration or a wish to win back losses.

How it works

Every extra off-plan decision lowers the quality of the process and increases transaction costs. Overtrading often grows with fatigue, boredom or after a losing streak.

Example

A quiet session with none of your planned setups. After an hour of waiting, you start trading “so something happens”.

What to watch out for

What helps: a clearly defined plan, breaks during the session and a journal in which you mark decisions as in plan or off plan.

See also

Tilt, FOMO, Expectancy.

More in Hetman Capital Club

You'll find the full explanation with graphics, examples and exercises in the 💪 Fitness and routine space, and its use in the live market in the 🔴 Live Room. Both are available to Club members (in Polish).

Educational content, not investment advice.