Are You Overtrading? Here’s How to Stop

Forex Traders Fail

Time is the most precious resource we have, and it’s also one of the most difficult to manage. We have to prioritize our time. We have to make sure we’re spending it on things that are meaningful and important.

Overtrading is a real problem. It’s when you take on more tasks than you can accomplish and end up feeling overwhelmed, overworked, and unable to accomplish the things you want to do.

The good news: Overtrading is completely preventable! You just have to understand the problem, and then change your behaviour.

This article is a great start.

Overtrading is a result of stress

The overstressed trader is stressed.

Overstressed because they feel like they can’t get everything done and it feels like they are taking on more work than they can handle.

Have you had this feeling in your trading?

Most traders feel like they have to keep juggling different balls in the air, but they know they shouldn’t. Traders know they have to do one thing at a time. Perhaps this is something you’ve been struggling with!

It’s easier to see what you’re overtrading on… if you actually list what you do.

Forex trading plan checklist

Because stress creates a tightness in your neck, back, shoulders, and head. It’s going to be easy to realise when you are overtrading with being stressed.

At the end of the day, you are the boss so it’s up to you to see that you’re working harder than you should be. Which creates stress with over trading.


That’s a good thing, because stress is a sign that you’re on the right track. It means that you’re doing something right! But you’re also not taking enough time for yourself away from the charts, which in time creates over trading.

How to stop overtrading by eliminating mindless tasks

I work with hundreds of students each year and spend several hours every day working on the trading courses and information. It’s easy for me to get lost in the numbers, especially when trying to be as productive as possible.

If I’m getting that much value from my time, then it makes sense for me to cut some of those tasks, right?


The difference between overtrading and being a good steward is the difference between a value producer and a value procrastinator.

A value producer gets value quickly and efficiently. They see the big picture and can quickly pivot to what’s next.

A value procrastinator makes poor decisions. They spend a lot of time trying to decide between a few tasks and get overwhelmed, stressed, and feel overwhelmed.

When watching a bunch of Forex pairs to trade, this means a lot of opportunities to trade, but it also means you can’t devote your attention to the tasks that are most important to you.

In fact, the tasks you’d rather spend your time on, whether it’s reading a book, meditating, or spending time with your family, can become highly time-consuming.

Because of this, overtrading has gotten to the point where most people avoid it at all costs.

They’re afraid of getting too far ahead of themselves, or having to make trades to make ends meet. What’s worse, over traders tend to have a “fantasy” about the markets.

They think they can “win” at making trades that they haven’t even done yet! Have you ever had this thought process in your trading?

How to stop overtrading by being in control of your time

To understand the problem of overtrading and be able to change your behaviour, you need to understand something called time poverty.

Here’s how time poverty manifests itself: It’s when you need more time to accomplish your goals than you have.

Time poverty has the following causes: Overwork, Shorter weekends and shorter days.

Shift work Over commitment Traveling, which involves limited time, and more air miles than hours of travel.

No vacation, Overtrading and time poverty can become so severe that you may find yourself without any time left to live your dream and pursue your goals.

This is why everyone should consider taking time management courses. Not only will it improve your life, but will also improve your trading.

You will understand how to prioritize and manage your time.

How to stop overtrading by prioritizing your time

When you overtrade, you spend more of your time than is necessary, which creates stress and makes it impossible to stay on top of all of your tasks. And that’s not to mention the fact that you’re not creating a work environment that’s conducive to your development.

When you have a tight schedule, you’re constantly trying to fulfil what you think you should be trading, instead of focusing on doing what you’re good at.

This can lead to a number of issues:

  • You don’t have time to manage your trades effectively
  • You end up overworking yourself
  • You’re always overextending yourself and meeting everyone else’s expectations
  • Even if you’re happy with your current trading, you could suffer if you don’t put your energy in the right areas.

So as you can see, it’s a important subject to start prioritizing your time when trading. What I suggest, is to start learning with material created with this in mind.

Taking any of my courses would give you more time and more importantly allow you to prioritize what’s most important… your time!

Why not check out my trading course now clicking here.

Give yourself a weekly limit

Plan Schedule

Overtrading is really easy to do when you’re too emotional about it.

Every time I see a Twitter comment that makes me feel like I’m being emotional about trades, I delete the comment.

It feels very impulsive, but it’s one of the best things you can do to help prevent future mistakes. You don’t want to overreact to every one of your trades. Not when you’re just trying to get started.

Overtrading is a common problem, but it’s not a problem that you can overcome overnight.

The first step is to understand your behavior and do something about it.

Set a trading limit

Your trading limit is a rule that limits the amount of trades you can make per week. It’s essentially a percentage of your account balance that’s set aside for trades.

With setting a trading limit can help you from not overtrading, and will help with these three things to help with your performance.

  • Forex you to plan your trades ahead of time
  • Stop yo giving back the profits you have made
  • You will be less likely to trade in the first 24 hours

Setting a trading limit is important because trading has high risks, and if you do not enforce a trading limit it can lead to blowing your account.

To help you recover from blowing your account, there’s a great trading article I wrote which you can read now clicking here.

Focus on Months and Years, Not Days and Weeks

Think of your life in terms of months and years. Think of the last year of your life.

Did you reach your goals?

I know that was a rhetorical question. If you did, congratulations!

You’re not an over committer. If you didn’t, well, then…that’s another story.

Time is a limited resource, and the best way to gain control over your life is to focus on months and years rather than days and weeks.

Have you ever seen a person who’s always rushing to the next thing without actually accomplishing anything?

They’re always out of control, always overextended, and always out of balance. It’s not possible to be a success if you’re always spending your time doing mindless busy work. Your life is not a to-do list. It’s not a race.

So the next time you sit down to look at your charts, try to plan your approach based on where you hope your account will be in two or three years from now. Then rather focusing on how much you win today or tomorrow!

Focus on the process instead.

Put your time and energy towards staying patient, sticking to the daily time frame and planning your week in advance.

The slow and steady approach wins the race… take your time and trade the process.


When you recognise a problem, you have a couple options.

You can: Re-direct your energy towards something you enjoy. Put this time towards something important and meaningful to you.

To try and solve a problem, think about the possible options and the costs associated with each one.

The first option won’t fix the problem. It won’t address your desire to complete the task and your fear of doing it poorly.

The second option, however, will address both of these problems. You can prioritize your time, choose to spend it on what you enjoy, and make sure you’re doing things that are important to you.

There’s no one-size-fits-all solution. There are just as many ways to solve any problem as there are people. The key is to take ownership of your life and do what’s necessary to improve it.

The same is said when it comes to trading, just remember to take your time. Learn to control your emotions and not to get over stressed!

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