Definition
Taking more trades than a plan calls for, for example, out of boredom, excitement or the need to be doing something.
The story
On a slow, choppy day there may be no clean setups at all, but sitting still can feel like wasting time. Each extra trade adds commissions, slippage and chances to be wrong. Some traders set a daily limit on trades for exactly this reason.
Why markets watch it
More trades doesn't mean more opportunity; each extra trade adds costs.
Connects to
Revenge tradingCommissions and feesChoppy marketTrading plan
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms