Define overtrading

That’s why it is advised to study about the market and trading before stepping in it.

I’m surprised nobody else has said this. Maybe it’s because I’m wrong. But I thought overtrading is simply taking on more risk than your trading plan allows. As for how or why that happens, well, that could be a variety of things. But I’d agree with Steve369 I that it has its roots in a lack of emotional control.

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Lol Or as Master Yoda would say, “Try not! Do, or do not. There is no try.”
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The better way to know this would be to prepare your mind that there will be situations in which you might face loss but you have to still act calmly in order to avoid overtrading.

If all those trades were 100% according to your rules ( or at least what is profitable for you ) then that is not overtrading. As long as everthing is inside the span of your plan.

However if it gives you more loss than proft, then it is overtrading or your strategy is not profitable.
If you are just moving yolo outside your plan, risk management, etc. than it can be overtrading or plain gambling lol.

Not every but almost. And this is not true. The ones who invest their time in practicing and learning trading more do not indulge in overtrading. And this is the actual way how a person should have their foundation in trading.

That’s more like not sticking to your risk management plan.

You have a great point! As long as the trader is following their trading plan, they are not overtrading. But if you make losses and your anger or fear make you risk more money, it is overtrading. You won’t realise that you have been overtrading until you make over-losses.

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That is the dangerous part with overtrading…You will not know, until you see your results…As a beginner just take it very easy and test things out. Write down exactly why you took a trade and how you felt at that moment. This way you can observe yourself on the technical and emotional part of trading. The better you become, the more confidence you will get and the more you MIGHT be able to trade. If you trade once a day or once a week and you are profitable, that actually can already be good enough.

As simple as that! If a trader does not want to be caught in the web, they got to refrain from trading all day and take time off after a serious loss.
And remember that it is not their full-time job and their focus must be on staying consistently successful than overtrade and lose many times.

We have to establish the control while doing our trading so that we will know when it is safe for us to do our trades.

When you’re tired, frustrated and trying desperately to profit, then you’re overtrading.

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Even chasing targets can be pecieved as over trading. Each trade you take should have an RR, try to focus on that rather than I need to make a certain amount of winning trades to hit my target

No, you are not wrong. I guess I got late landing here. I completely agree with you and that’s what it is. A well-built trading plan can help you structure the process of trading and make you more conscious about your trading decisions. Make sure that you indicate the specific instrument that you want to trade, specific time of the trade when you want to trade, and an estimate of the number of gains you want to make and the losses you can take.

As they say, experience is the best teacher. What you did when you started to trade comes nowhere near to what you do now as an experienced trader; be it over trading or not being able to control your emotions.

When your trade is already in loss and still you are placing more losing trade, hoping you will recover all the losses. :slightly_smiling_face: :slightly_smiling_face:

You have given me a new perspective! And I am sure if anyone follows the same mindset, there won’t be anything that can match the happiness that you get when you make a profit. At least, you won’t be more disheartened when you lose.

When is the desperation not there man, that is the very reason I even got into trading!

Ya and in the process making all the wrong moves. But at the same time you know it’s important to keep focus on reaching your targets.

Mind over matter :slight_smile: