How do you avoid trading out of boredom?
Boredom is one of the most expensive emotions in trading. Quiet markets produce pointless trades, and pointless trades produce slow, steady losses through spreads and commissions.
What's your antidote?
- rules about minimum conditions for a trade
- non-trading activities that replace screen-watching
- how you notice boredom creeping in before the damage
The overtrading guide names the pattern and the fixes.
Background: Revenge trading and overtrading: how to spot them and stop
Trading to win back a loss, or trading out of boredom, are two of the fastest ways to damage an account. Learn the warning signs and the rules that interrupt them.
What is revenge trading?
Opening a trade to win back a recent loss rather than because your trading plan gives a signal, often with a bigger position than usual.
How do I stop overtrading?
Set a maximum number of trades and a daily loss limit in advance, require a written reason from your plan before each entry, and check in your journal whether the extra trades have helped or hurt your results.
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