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Dunn To PerfectionFoundation

Trading Psychology · Module 2: Cognitive Biases · Lesson 5

Overtrading

Beginner 6 minLesson 9 of 13

Learning objectives

  • Explain overtrading in plain language
  • Understand why it matters to markets
  • Recognise a common misconception

The concept

Trading too often, usually from boredom or emotion.

Why it matters

It multiplies costs and mistakes.

How markets interpret it

Quality setups are relatively rare.

Key takeaways

  • Fewer, better decisions.

Knowledge check

Overtrading mainly increases…

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