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Overtrading

In one line: Trading more than your plan says, often to chase losses or excitement.
More videos on this (3)

Barber and Odean (2000) studied US households (1991–1996). The households that traded most earned 11.4% a year after costs, against 17.9% for the market. The average household earned 16.4%.

They blamed overconfidence for the excess trading. More clicks ≠ more money.

Barber, Lee, Liu and Odean (2014) studied Taiwanese day traders (1992–2006): fewer than 1% predictably earned positive returns after costs.

Further viewing

External videos are for viewing only: we don't use them as a factual source.

External video, for viewing onlyStop Chasing the Holy Grail: The Trading Mindset That Brings Peace
Stick Trader · open on YouTube
External video, for viewing onlyThe SECRET to Mastering Trading Patience That Wins
Stick Trader · open on YouTube
External video, for viewing onlyThe Sniper Mindset: Why the Best Traders Do Almost Nothing
Stick Trader · open on YouTube

Related

Sources & studies

  1. Barber & Odean (2000), Trading Is Hazardous to Your Wealth, Journal of Finance
  2. Barber, Lee, Liu & Odean (2014), Journal of Financial Markets

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Last checked: 2026-11-04 · Educational, not financial advice.

Education only, not financial advice. No signals. Backtests are hypothetical: real trading can be worse. Past results don't predict future results.