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Overtrading concerns departures from a plan, not just trade count

Emotional decisions can change both frequency and position size.

Dukascopy describes overtrading as activity that exceeds what a trader’s method, capital and market conditions justify. The issue can be repeated entries without a clear setup, or a sudden increase in exposure after losses. A strategy designed for frequent trades is therefore different from trading frequently because of boredom or urgency.

The article identifies both winning and losing streaks as possible triggers. Confidence after a gain can weaken discipline, while a loss can create pressure to recover immediately. A written plan, a journal and explicit boundaries provide a way to compare decisions with the process originally intended.

The guide presents those tools as behavioural controls rather than a guarantee of results. This summary keeps that distinction and omits promotional invitations to open an account. Its practical learning point is to assess why a trade was placed, not only how many trades were recorded.

Image source: Dukascopy Bank SA

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