The Psychology Behind Overtrading

đź§  The Psychology Behind Overtrading

Why traders click more than they should — and how to break the cycle using awareness, structure, and better habits.

📊 Overtrading Meter

Level 1 · Calm

Slide to see which psychological zone you’re currently in — from calm professional to panic overtrader.

1 · Calm 2 · Impatient 3 · Emotional 4 · Overtrading
🟢 Calm, rule-based decision making.
Calm & Selective

You wait patiently and only take high-quality setups that meet your rules.

Simulation: You check the charts, see nothing, and walk away without forcing a trade. You’re okay with “no trade” being a valid decision.

📉 Real Case: Paul Tudor Jones & Overtrading

Even legendary traders had to fight the urge to overtrade.

Paul Tudor Jones

Paul Tudor Jones (PTJ), one of the world’s most successful macro traders, has openly talked about how overtrading and emotional decisions almost destroyed him early in his career.

He became famous for his strict discipline rule:
“Losers average losers.”
In simple words: if a position is losing, don’t keep adding more size hoping it will turn around.

PTJ realised that when he started taking too many trades, too fast, it was almost never about strategy. It was about discomfort, ego, and fear of missing out. His solution was to reduce size, slow down, and go back to his plan.

Source

đź§Ş 4-Point Self-Check

Tick what feels true for you right now. Your goal isn’t to be perfect — it’s to be honest.

You selected 0/4. Right now, your overtrading risk looks low. Keep your routines steady.