What are the common causes of overtrading?
Overtrading is a common issue among traders who engage in excessive buying and selling of securities. Some of the common causes of overtrading include a lack of a well-defined trading plan, emotional trading decisions, excessive optimism, the influence of market rumors and news, and the pursuit of short-term gains. Other factors that can contribute to overtrading include a lack of discipline, a desire to make up for losses, and a lack of patience. It is important for traders to understand these common causes of overtrading and to take steps to avoid these pitfalls, such as developing a clear trading plan, setting realistic goals, and staying disciplined in the face of market volatility. By avoiding these common causes of overtrading, traders can increase their chances of success in the markets.
Feb 07, 2023 17:02