Define overtrading

Where do you draw the line? Is there a fixed number of hours that should be kept aside for trading, would that help?

Taking stupid trades that don’t suit your plan. Trading out of desperation to make a profit. Take some profit and take time off for the day.


Having a “oh one more won’t hurt” attitude to your trading. If it falls outside your plan then it probably superfluous

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when you trade but theres no indicators to open a position

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When you can’t sleep well, when you are worried about your position, when you see a set up on a timeframe that isn’t yours and you take it.

When you see a set up that is not your strategy and you take it, when you are keeping up to date with every bit of market punditry, when you are watching every tick, when you are subscribed to every newsletter, you tube channel etc, when you have more strategy ideas coming out your head than you have time in day

And despite all this … you aren’t profitable

These are some of the symptoms of overtrading


you overtrading when your not aware your overtrading

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You are overtrading when you mistake it for ‘working hard at trading’

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true,people do things for different reasons even swiss/jap broken out of its range

The irony is that when you don’t have a profitable day you keep making stupid trades, and the cycle continues.

So got to stick to the plan man.

It true that every trader goes through this phase?

Personally I dont believe in that term overtrading. It doesn’t make sense.

Either you follow your plan or you dont. You can trade all day and all week as long as you follow your plan. You’re not overtrading.

You need to look into your trading and pinpoint what is going wrong.

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Ok, so, do you always “follow your plan” 100% of the time? If so, how about sharing the last x years worth of performance metrics for your book?

“Over-trading” to me is typically preceded by 1 of 2 things: boredom or revenge.
Some people mistake “over-trading” for the market firing off a bunch of simultaneous signals on correlated instruments (say, a beta > .50).



Maybe it doesn’t exist - but it did and even still does at times feel it exists to me.

But point taken, almost always overtrading coincides with lapses in discipline. And usually involves revenge on some level too.

But I dont call not following my plan over-trading. It’s just not following my plan. Theres too many over complicating things in trading, I like to keep it simple. If I take 1 trade this week but 5 trades next week that’s not because I’m over trading. I may just be following my plan.

Heres a good one… your trading plan rules say to take no more than 2 trades per day, but one particular day you end up taking 7, would that be overtrading? FYI all 7 trades were winners. :joy:

We have to follow certain rules while doing our trades. In this way we can minimize the risks and increase the profits from our trades.

yes trading i believe is like buying something what is good value, even if the trade fails and end up a loss, you wait for the next entry where you feel the profit over loss is potentially high. Over trading maybe down to frustration ,thrill seeking ,boredom.similar to compulsive gambling.Regarding having numerous trades open at the same time its just not wise unless holding trades long term

So the idea then should be just to have a broad framework of so-called rules, but there’s no good enough reason to follow it to T.

Personally I feel over trading is how much your account is exposed to a certain number of trades per time in relation to your margin percent

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