Overtrading

Overtrading means taking far more trades than a strategy's rules justify, often driven by boredom, the urge to stay active, or trying to recover recent losses. Beyond the higher cumulative spread and commission cost, overtrading typically means taking lower-quality setups that don't meet the trader's own entry criteria. A trading plan with clear, written entry rules is the most direct check against overtrading, since it gives an objective standard to measure any given trade idea against.