Overtrading - Is it about the Psychology or the Numbers


Hi guys,

From the perspective of an intraday trader, how many trades per day is considered to be overtrading?

I mean, if a scalper is able to grab 10+ set ups/day with let’s say 75% win rate, Is he overtrading despite being in profit? What if out of those 10+ trades, he loses 60% of them, is he then overtrading?

I guess I am trying to get your opinion on which factors determine « overtrading ». The overall number of daily trades regardless of the win rate or The number of daily trades taken based on your losses and how it might affect your trading psychology?

Or maybe something else …?

For me it’s not a number so much. It’s definitely more psychological and being able to stay disciplined, trading according to your plan, trading patiently, NOT feeling like you need to trade, and trading within your risk parameters.

Maintain proper risk management.
Stick to your plan.

Yh I see what you mean

It’s easy to feel like you need to win your losers back immediately. You’re allowing your past trades to potentially negatively affect your next trade even before it’s gotten going. That most likely isn’t in your trading plan.

If I ever consider to have more than one trade in flight at the same time, I limit my total maximum market exposure to 3% of bank. That is to say, I normally approach each trade as 1% of bank, and very occasionally 2%. So if I had a 2% trade active, and the setup came along to put me into another trade, I would add 1% for a total of 3% exposed. But let’s say that I had already moved the 2% trade stop loss to break even. Then I would still have a total of 3% to trade concurrently. I have to say its about five years since that event happened. Nevertheless it is there to remind me.

So from a intraday trading perspective, I don’t think of a limit on the number of trades per day, rather the number of concurrent trades not exceeding 3% of bank. Rare for me because I do not intraday trade (unless my swing trading objectives are all met during the same day).

I dont think it is a number either i think its the mindset of either chasing a loss or greed. If youre plan is 10 trades a day then thats not overtrading if youre plan is 3 a day and you do 10 then it is

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This does become a mind game of patience when you look every day for a valid Crypto trade and can’t find one in three months! Admittedly I have not analyzed 8,000 pairs every day - I do work with a cut down number of pairs, but what seemed to be so easy back in March to May has become, for me anyway, almost impossible. Look at the upside. No trades means no losses. :stuck_out_tongue_closed_eyes:

How about a test? Try to step away from trading. Can you be away without feeling pressure to get behind the screen? I think that component of trading can also lead to overtrading. You’re trading just to trade, and not necessarily because your analysis is telling you to.


I guess the problem starts when you also do NOT have a plan lol.

No plan means no such thing as overtrading right?