Trading psychology · Rookie
Overtrading
What does Overtrading mean?
Overtrading means taking more trades or exposure than the strategy and risk plan justify. It can come from boredom, frustration or pressure to hit a target.
Example
A trader takes weak setups during a quiet session to feel productive.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
More activity increases costs and can concentrate losses without adding a valid trading opportunity.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.