🍄 Overtrading is a constant need to be in positions, even if there is no reason for it.

The main negative effect is a decrease in overall profitability due to many ineffective transactions

The trader does not wait for favorable opportunities. He cannot wait in principle 😺 Each new idea is immediately implemented into a transaction, without going through a critical assessment.

As a result, trading statistics are distorted by “excessive” transactions that do not correspond to the trading strategy.

🧪 For example, out of 100 transactions per month, only 50 could correspond to the original plan, while the remaining 50 were impulsive and drag the indicators down.

In the future, it becomes difficult to understand what the problem is: in the system or in the fact that the trader has long since departed from it? ❓

This leads to the fact that a person begins to “optimize” the system, which is not actually to blame.

If you constantly allow yourself to deviate from the established plan, this becomes the new norm. When chaos becomes the norm, discipline disappears.