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Avoid excessive trading

Excessive trading refers to the act of buying and selling assets too frequently. However, there are some downsides to excessive trading:

1. Increased transaction costs: Each trade incurs fees (trading commissions, network fees), and with excessive trading, you can quickly erode your profits, making it harder to achieve overall profitability.

2. Burnout and stress: Constantly monitoring the market and executing trades can be mentally exhausting and lead to burnout, affecting your decision-making ability.

To avoid excessive trading, focus on quality over quantity. Execute trades only when a clear opportunity arises in accordance with your pre-defined trading plan and strategy. Patience is a virtue in trading.