Forex Term

Overtrading

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

Overtrading is taking more trades than your plan or edge justifies, often from boredom, greed, or trying to recover losses. It runs up spread and commission costs and raises the chance of mistakes. Quality over quantity — waiting for good setups — beats constant activity.

Example

Taking 20 low-quality trades in a day just to stay busy is overtrading.

Related Terms

Recommended Brokers

Pepperstone logo

Pepperstone

Best for Copy Trading

Visit Pepperstone

Trading Forex and CFDs involves a significant risk of loss.

XM logo

XM

Best for Beginners

Visit XM

Trading Forex and CFDs involves a significant risk of loss.

Risk

Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.