Taking more trades than your strategy justifies, usually driven by emotion rather than edge. A major cause of prop firm challenge failures.
Overtrading increases costs (commissions, spreads), increases exposure to daily drawdown limits, and often reflects deteriorating decision quality. Studies suggest traders who take more than 10 trades per day on average have lower profitability than those who take 2-5. Each additional trade adds cost and risk without necessarily adding edge. PropWise's Overtrading Detector calculates your optimal frequency based on your edge and costs.