The Ultimate Trading Guide on Elliot Wave Theory

The More Trades You Make, the More Profitable You’ll Be – Myth or Truth?

Trading, especially in the forex and stock markets, is full of myths that trap beginners and even seasoned traders. One of the most dangerous misconceptions out there is this: the more trades you make, the more money you’ll earn. Sounds logical on the surface, right? More trades should equal more chances to win. But in reality, this mindset is a one-way ticket to blown accounts, sleepless nights, and endless frustration.

The More Trades You Make, the More Profitable You’ll Be

In this article, we’ll dive deep into why this belief is misleading, explore the ugly truth about overtrading, and uncover strategies to focus on quality over quantity. Let’s break this myth apart step by step.

1. The Illusion of “More is Better” in Trading

We live in a world where hustle culture glorifies doing more—more work hours, more projects, more productivity hacks. So naturally, traders think the same rule applies: more trades mean more profits.

But trading isn’t like grinding overtime. It’s more like fishing. You don’t catch more fish by thrashing your net in the water every second—you catch them by patiently waiting for the right moment when the fish is actually there.

2. What is Overtrading?

Overtrading is when a trader takes excessive positions in the market, either too frequently or with too much size, often without solid reasoning. It usually comes from:

-Greed – chasing profits.

-Fear of missing out (FOMO) – not wanting to miss a move.

-Boredom – trading just to feel “active.”

-Revenge trading – trying to recover losses quickly.

📌It’s like gambling after a loss at the casino—you keep throwing chips on the table hoping to strike lucky. Spoiler: the house always wins.

3. Why More Trades Rarely Equals More Profits

Let’s cut through the fantasy. Here’s why frequent trading usually backfires:

-Higher Transaction Costs – Every trade has spreads, commissions, or fees. Do enough trades and those costs chew up your account like termites on wood.

-Emotional Drain – The more trades you take, the more emotions you experience—greed, fear, hope, regret. Emotions cloud judgment.

-Lower Quality Trades – When you trade often, you stop waiting for high-probability setups. Instead, you settle for “good enough.”

-Burnout – Monitoring charts all day just to chase setups is exhausting. Tired traders make stupid mistakes.

4. The Transaction Cost Trap

Think of trading like running a restaurant. Imagine every trade is like buying ingredients. If you buy too often, your overhead costs skyrocket. Even if you cook delicious meals (profitable trades), your profit margins shrink.

For example, scalpers who take dozens of trades daily often struggle not because they’re bad traders, but because fees eat up the bulk of their wins.

Analyzing Profit Splits and Payout Structures

5. Emotions: The Silent Account Killer

Trading too often is like being in a toxic relationship with your emotions. One moment you’re euphoric, the next you’re devastated. And the worst part? Emotions trick you into bad decisions.

Lose one trade? You’ll feel the urge to jump back in and “fix it.”

Win a trade? You’ll feel invincible and overconfident.

This emotional rollercoaster is exhausting, and nine times out of ten, your account balance pays the price.

6. Quality vs. Quantity: The Real Secret

Here’s the truth: trading isn’t about how many trades you make, but about how good your trades are.

Imagine being a sniper. Do you fire randomly in every direction, hoping to hit something? No—you wait, you aim, and you pull the trigger only when the odds are in your favor. Trading is no different.

7. High-Probability Setups: Less is More

Professional traders don’t flood their portfolios with endless trades. They wait for high-probability setups—moments when multiple indicators, patterns, or market conditions align to provide the best chance of success.

They may take only 2-3 trades a week, but those trades are backed by discipline and analysis, not emotion. And that’s why they stay profitable long-term.

8. The Psychological Trap of Overtrading

Why do traders keep falling into the trap of thinking more trades equal more profits? Simple: the brain loves action.

The dopamine rush of clicking “buy” or “sell” feels rewarding.

Seeing charts move makes you think you’re missing opportunities.

Social media traders flaunt dozens of trades, tricking you into thinking that’s the “right way.”

It’s no different than junk food—your brain craves it, but too much leaves you sick.

9. Signs You’re Overtrading

Let’s be real—sometimes you don’t even realize you’re overtrading until your account is bleeding. Here are warning signs:

You’re glued to charts all day.

You take trades without a clear strategy.

You increase lot size after a loss to “make it back.”

You can’t resist trading every tiny market move.

You feel anxious when you’re not in a trade.

If any of these sound familiar, you’re probably overtrading.

domino effect on other countries

10. The Domino Effect: How Overtrading Destroys Accounts

One bad habit leads to another. Overtrading often triggers:

Risk Mismanagement – using bigger positions.

Revenge Trading – chasing losses with irrational trades.

Margin Calls – blowing your account from oversized exposure.

11. How to Break the Overtrading Cycle

Good news: overtrading isn’t a life sentence. Here’s how you break free:

Create a Trading Plan – Define when, why, and how you trade. Stick to it.

Set Trade Limits – Decide on a maximum number of trades per day or week.

Journal Every Trade – Write down your reasoning. If you can’t explain why you entered, it’s probably a bad trade.

Focus on Quality Signals – Use strict criteria before entering a trade.

Take Breaks – Step away from charts. A clear mind sees better setups.

12. The Role of Patience in Profitable Trading

Patience is a trader’s best friend. The markets aren’t going anywhere—there will always be another opportunity. But if you blow your account today, you won’t be around to catch tomorrow’s move.

Think of patience like planting seeds. If you dig them up every hour to check progress, they’ll never grow. Let them breathe, and over time, you’ll see results.

13. Stories of Traders Who Lost by Overtrading

History is full of traders who went broke not because they lacked skill, but because they couldn’t control their urge to overtrade.

Some wiped out entire hedge funds by doubling down on bad trades.

Others burned through personal fortunes chasing “just one more setup.”

These cautionary tales remind us: discipline beats impulse every time.

14. The Positive Side: Trading Less, Earning More

Here’s the uplifting part. Many successful traders prove that fewer trades can mean bigger profits. They focus on:

Long-term trends instead of tiny price moves.

Strong setups with high probability of success.

Risk management that protects capital.

By trading less, they save on costs, reduce stress, and grow accounts steadily.

trading on emotions can lead to disastrous results.

15. Overtrading vs. Professional Trading

The difference between amateurs and professionals isn’t access to better indicators—it’s mindset.

Amateurs: Chase every trade, let emotions rule, aim for fast money.

Professionals: Wait patiently, control emotions, focus on consistent returns.

It’s like comparing a casual gambler at a casino with a poker pro who knows the odds and plays strategically.

Conclusion

The myth that “the more trades you make, the more profitable you’ll be” is one of the deadliest lies in trading. Overtrading drains accounts, fuels emotions, and creates a cycle of losses. Real success in trading doesn’t come from how many trades you take—it comes from taking the right trades with patience, discipline, and strategy.

Trading is a marathon, not a sprint. If you want long-term profits, stop obsessing over trade counts and start focusing on trade quality. Remember: less is more.

FAQs

1. Why is overtrading dangerous?

Because it leads to higher costs, emotional decisions, and poor-quality trades, which often end in losses.

2. How many trades should I take per day?

There’s no magic number, but focusing on 1–3 high-quality setups daily (or even weekly) is far better than dozens of random trades.

3. Can scalping be profitable without overtrading?

Yes, but only if it’s part of a well-tested strategy with strict risk management. Otherwise, it easily turns into overtrading.

4. How can I tell if I’m overtrading?

If you’re trading out of boredom, chasing losses, or taking trades without a clear setup, you’re overtrading.

5. What’s the best way to avoid overtrading?

Stick to a trading plan, set strict rules for entries, and take breaks to avoid impulsive decisions.