The Simple Routine That Keeps Me from Overtrading

One of the most expensive mistakes I see is not picking the wrong stock or misreading a chart. It is overtrading. For years, I thought more trades meant more money. I believed activity equaled progress. Truth is, overtrading almost wrecked my account more than once. If you do not master restraint, the market will teach you the hard way.

Why Overtrading Is the Silent Account Killer

It is not the market’s volatility that drains most trading accounts, it is impatience. Every extra trade you make, especially those that are unplanned or impulsive, chips away at your long-term returns. Even small, frequent trades can cost you through commissions and slippage, often without you realizing it. Add in the emotional fatigue from constantly watching positions, second-guessing decisions, and reacting to every tick, and your mental energy gets sapped.

When you’re always looking for the next trade, you never give yourself a chance to reflect and recover from the last one. The more you chase, the more mistakes you make: rushed entries, forced exits, ignoring your own strategy. It becomes a cycle. What starts as a few “harmless” extra trades out of boredom or fear of missing out can quickly snowball into a string of losses. These small errors add up, and before you know it, you’ve wiped out months of hard-earned gains, leaving you frustrated and more likely to keep repeating the cycle.

The Signs You’re Overtrading (And Lying to Yourself)

Ask yourself: Are you being “active,” or are you just addicted to action? Overtrading hides behind all kinds of excuses: “It’s just one more trade.” “I do not want to miss out.” “I need to make back what I lost.” Sometimes it shows up as “I’m just being nimble” or “I’ll just take a quick scalp to feel productive.” If you find yourself increasing trade size after a loss, jumping in just because you are bored, taking multiple trades in rapid succession, or making decisions faster than usual, you are probably overtrading.

The urge to “do something” can feel almost overwhelming—like you have to act or you’ll fall behind—but it is rarely profitable. Overtrading is sneaky because it tricks you into thinking you are being proactive, when really you are just reacting to fear or restlessness. Real discipline is knowing when to act and, even more importantly, when to wait.

My Simple Anti-Overtrading Routine

The first rule in my routine is strict: I set a weekly limit for how many trades I will take... no exceptions. For me, that is no more than seven open positions at any given time. I spread them across different setups or strategies. Once I hit that number, I am done. I WILL NOT place any new trades until I've closed one of the ones I already have. I won't even look for new trades, because I don't want to be tempted to overtrade. This forces me to be selective.

Next, I use a pre-trade checklist before entering any position. This is not a rubber stamp, but a filter. If the trade does not fit my criteria (seasonal edge, technical setup, risk size, clear plan), I skip it. No exceptions, even if it “feels” right.

When I feel the urge to trade just because the market is moving, I have a “sit on your hands” rule. I close my trading platform, take a walk, or work on something else for at least 15 minutes. The pause almost always brings clarity. Most of the trades I was about to make impulsively are not worth it after all.

Finally, I track every trade in real time, not just at the end of the week. Seeing my activity in black and white holds me accountable and highlights any lapses in discipline before they become costly.

Restraint Is a Superpower. Here’s What Changed for Me.

When I started trading less, I began making more. My win rate went up, my profits stabilized, and I finally stopped feeling anxious about missing moves. My best students have the same story. The ones who went from “every setup” to “only the best” saw their accounts (and their confidence) grow. Missing a few trades is actually the key to catching the best ones. The market will always offer another opportunity. So if you struggle with overtrading, here's a mantra to repeat to yourself. 

"No trade is better than a bad trade."

Challenge and Next Steps

Here’s my challenge for you. For the next month, make it your mission to track every single trade you take. No exceptions and no shortcuts. Write down each entry and exit as soon as it happens, along with the reason you took the trade. At the end of each week, set aside time to review your full list. Ask yourself: “How many of these trades actually fit my plan? How many were driven by boredom, FOMO, or a need to be active?” You will probably be surprised at the honest answers you find. Most people discover they are far more active than they think, and many trades could have been avoided with a little more patience. If you want my printable anti-overtrading checklist or a tracker template, let me know and I will send it your way so you can put this habit into practice and see the change for yourself.

Share your overtrading story or your results in the comments, or check out the Growth Plan for more tools and support. Trading less does not mean settling for less. It means trading smarter and building the discipline that actually makes you money.