What is overtrading?
Taking more positions than your edge justifies, usually to stay busy.
Taking more positions than your edge justifies, usually to stay busy.
Overtrading, explained
Fees, spreads and attention are all finite, and a real setup is not always available. Overtrading is the gap between the trades worth taking and the trades taken, and the gap tends to widen on quiet days.
A worked example
Your breakouts pay, and you take about four a week. On a slow Tuesday you take nine positions, five of them tagged “No setup”.
Where overtrading shows up in a journal
A trading journal is where this stops being a definition and becomes your own number. sizeforzero computes it from the trades you import or log, alongside the rest of your analytics vocabulary, and every figure in the app carries an (i) that explains it in the same plain English you just read.