🔁 Why Overtrading Feels Productive but Destroys Accounts
🎯 The Lesson
You’re in front of the screen all day.
You see setups everywhere.
You take ten trades — win some, lose some — and end the day exhausted, with little to show.
That’s overtrading: working hard, not smart.
It feels productive, but it quietly drains your capital.
⚙️ Step 1: The Math Behind the Problem
Every trade costs money — spread, commission, slippage.
Even if you only lose 0.2R per bad setup, ten random trades equal –2R of damage.
That’s the same as losing two good setups without ever getting one high-quality entry.
Example:
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Average win = +2R
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Average loss = –1R
If you take 10 trades, only 3 good ones and 7 bad:
(3 × 2R) – (7 × 1R) = –1R total
You worked all day to lose money.
📊 Step 2: The “3-Trade Rule”
Professionals limit their daily activity.
If you lose three trades in one session, you stop — no exceptions.
This caps your daily loss and forces focus.
Example:
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3 trades × 2% risk = 6% potential drawdown
That’s the upper limit before you step away.
If your system’s edge is real, fewer trades = cleaner results.
💡 Step 3: Filter by Quality, Not Quantity
Use a checklist before every trade:
✅ Is trend clear?
✅ Is stop loss logical (not emotional)?
✅ Is R:R above 1:1.5?
✅ Is volatility stable?
If you answer “no” to any — skip it.
Skipping bad trades is still good trading.
🔑 Step 4: Think Like a Business
Each trade is a business expense.
Would you spend $200 on something without knowing if it works?
Then don’t risk it on a random candle.
Quality control is your profit engine.
🚀 Takeaway
Overtrading gives the illusion of progress but guarantees fatigue and losses.
Trade less, analyze more, and your account — and mind — will both grow stronger.
📢 Join my MQL5 channel for more trading & risk-management insights:
👉 https://www.mql5.com/en/channels/issam_kassas
