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Psychology

Overtrading — definition & meaning

Placing too many trades, often out of boredom or emotion.

Overtrading is taking more trades than your plan justifies — chasing action, forcing setups, or trying to win losses back quickly.

It piles up spread and commission costs and usually stems from emotion rather than edge. Sitting on your hands when there is no good setup is a skill in itself.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

Related terms

Revenge trading
Trying to win back a loss quickly by trading emotionally.
Trading discipline
Sticking to your plan and rules even when emotions push otherwise.
Commission
A per-trade fee some brokers charge on top of, or instead of, the spread.
FOMO
Fear of missing out — chasing a move for fear of being left behind.
Trading plan
A written set of rules for what, when and how much you trade.
Trading journal
A record of your trades used to learn from wins and mistakes.

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