Overtrading

Overtrading is trading more frequently, larger, or more reactively than a justified strategy and risk plan calls for over time.

It can follow boredom, frustration, FOMO, attempts to recover a loss, or incentives that reward activity rather than outcomes. More trades increase exposure to spreads, fees, slippage, operational errors, and inconsistent decisions, even when gross results look active. Tracking turnover, reasons for entry, rule violations, and net performance can reveal the pattern and support enforceable limits or cooling-off periods before further trading.

High turnover can produce a net loss through costs and poor execution even when many individual trades are profitable before expenses.