Overtrading and discipline

What it is

Overtrading is taking trades that don't meet your criteria, often out of boredom, impatience or a feeling that you should be doing something. Each one adds costs and lower-quality results that dilute the setups that actually work.

How to spot it

• Many more trades on some days than others, with worse results on the busy days.
• Lots of C-grade trades in your journal.

How to use it

• Cap the number of trades per day or session.
• Only trade your A setups, and grade every trade so you can check.
• Use the backtester to practise patience: replay and wait for the setup.

Common mistakes

• Trading through quiet sessions just to be active.
• Treating a day with no trades as a wasted day.

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