FOREX EXPERT 1.0 - OVER TRADING (EN)

OVER TRADING is a phenomenon where an investor or trader executes too many trades in a short period of time. This can stem from a desire for quick profits, overconfidence, an attempt to recover previous losses (commonly known as "chasing losses"), or emotional impulses. Overtrading is dangerous because it increases the risk of making reckless decisions, which often leads to financial losses and emotional exhaustion.

It often causes the investor to deviate from their trading plan, ignoring analysis and strategy in favor of quick, impulsive trades. This, in turn, can lead to decreased effectiveness and more losses than gains.

Avoiding overtrading is crucial for long-term success in financial markets. It requires discipline, adherence to a trading plan, and managing emotions when making investment decisions.

This guide is designed to protect you from falling into the trap of overtrading. In the financial world, it is one of the most dangerous phenomena that young, inexperienced traders face. Being aware of its existence will protect you from losing your capital!