Overtrading - The Trap of 'One More Trade'....NOTE – This is a post on Mindset and emotion. It is NOT a Trade idea or strategy designed to make you money. If anything, I’m taking the time here to post as an effort to help you preserve your capital, energy and will so that you are able to execute your own trading system as best you can from a place of calm, patience and confidence.
Here’s a scenario:
You’ve had a good trade. Maybe two.
The system is working. The market is flowing.
But instead of stopping… you keep clicking.
You chase another setup. And another.
Soon the edge is gone and so is the self control!
Overtrading is one of the fastest ways to drain not just your account, but your energy and confidence too. I’ve been there (especially as I've dropped down to lower timeframes). I know how quickly it can creep in.
So here are some thoughts for you. Please take what resonates and ignore what doesn’t.
How overtrading shows up:
– You take trades outside your plan just to stay in the action.
– You increase size because you feel “in the zone.”
– You keep trading after losses to “win it back.”
– You tell yourself the market is full of opportunity and you don’t want to miss out.
– Your screen time becomes endless, even when setups are poor.
Emotional side:
Overtrading often hides a deeper need: For excitement, for control, for certainty. Your body feels restless, your mind convinces you there’s always another trade and your emotions swing between euphoria and regret. It’s not lack of knowledge that fuels this. It’s the inner pressure to do something.
So how can we get hold of this before it sabotages our intentions?
Shift your mindset
See discipline not as restriction, but as protection. Every trade you don’t take is just as important as the ones you do. Passing on noise preserves your edge for the moments that really count.
Practical tips … the How:
When you notice the urge to keep trading:
– Ask yourself: Would I take this trade if it were my first of the day?
– Set a daily trade limit and respect it.
Remind yourself: Staying in cash is a position too.
I hope this helps. Interested in hearing how do you recognise and manage overtrading when it creeps in?
