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What is Overtrading?

Overtrading is excessive buying or selling driven by emotions rather than strategy, harming your portfolio over time.

Active Trading vs Overtrading

Active trading is planned and research-backed. Overtrading is chaotic, emotional, and often leads to losses.

Why Do Traders Overtrade?

Common causes include boredom, performance pressure, addiction to excitement, unrealistic expectations, or escaping reality.

Hidden Costs of Overtrading

Overtrading increases fees, taxes, stress, risks, and often reduces overall returns.

Signs You May Be Overtrading

Warning signs include emotional trading, frequent losses, ignoring risk management, and doubling down after a loss.

How to Avoid Overtrading

Use a clear trading plan, set limits, maintain a journal, take breaks, and focus on quality over quantity.

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