#TradingMistakes101

# Trading Mistake 101: The Overtrading Trap

The single most common and costly mistake new traders make? **Overtrading.**

It's the relentless urge to be constantly in the market, chasing every perceived opportunity. Driven by fear of missing out (FOMO), boredom, or the desire to quickly recoup losses ("revenge trading"), overtraders execute far too many positions, often with minimal edge.

**Why is it deadly?**

1. **Increased Costs:** Every trade incurs commissions and spreads, eroding profits.

2. **Amplified Risk:** More positions mean more exposure to unexpected market moves.

3. **Emotional Drain:** Constant action leads to fatigue, clouded judgment, and impulsive decisions.

4. **Diluted Strategy:** It deviates from a planned, disciplined approach, turning trading into gambling.

**The Solution: Discipline & Patience**

* **Have a Clear Plan:** Define entry/exit rules and position sizing *before* trading. Stick to it.

* **Quality Over Quantity:** Focus on high-probability setups that align with your strategy, not every blip on the chart.

* **Set Daily Limits:** Limit the number of trades or risk exposure per day/session.

* **Embrace Waiting:** The market doesn't offer golden opportunities constantly. Patience is a powerful tool.

**Remember:** Successful trading isn't about constant action; it's about calculated execution and rigorous risk management. Avoid Mistake 101 – trade less, trade smarter. Protect your capital first; profits follow disciplined patience.