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Why Quality Matters More Than Quantity In Trading


If you are new to forex trading, you may be wondering whether it’s the quality or quantity of trades that matters more. This subject is a hot topic in forex trading, but it can be difficult to know what to believe when you are just starting out.

In this article, we’ll take you through some of the reasons why it is actually the quality that matters the most in trading. If you are brand new to forex, it may be worth checking out information on styles of trading by reading our leverage definition and meaning.

What Is Over-Trading?

Over-trading is often the reason why so many traders don’t succeed. It’s easy to fall into the trap of thinking that more trades equals more money or to start thinking that you’re missing out on trading opportunities by taking it slow. In actuality, over-trading is extremely risky trading behavior.

When people make the mistake of thinking quantity matters more than quality in trading, they may fall into the bad habit of over-trading. Signs that you might be over-trading include:

  • It feels like you are always involved in a trade.
  • You are involved with multiple trades at any one time and haven’t considered the risks of doing so.
  • You’re always thinking about trades or the market, and trading is eating into the rest of your life.
  • You keep making bad quality trades that cut into your profits and make you lose your edge.

Over-trading can look different from this, but if you find yourself displaying any of these behaviors, it may be worth sitting down and reevaluating your approach. If you don’t, you might find that your trading will suffer greatly as a result.

Why Is Over-Trading Bad for Your Trades? 

There are a couple of reasons why over-trading is bad for your trades

For one thing, over-trading can result in you losing your edge. When you are more focused on quantity than quality, you will find yourself going for low-probability trades. You may do this without even considering whether or not these opportunities meet your trade criteria. When you start doing this, you significantly lower your chance of success. This cuts into your profits.

Another issue is that over-trading can have a negative impact on your mental health. Often people fall into the habit of over-trading because they feel frustrated that they haven’t made as much money as they would like. They may also be afraid of not making up for a loss or over-excited about a new trading opportunity.

When you fall into over-trading habits because of such feelings, it can be incredibly easy for an interest in trading to quickly become an addiction. It will become more and more difficult for you to pull yourself away from your charts, and you’ll find that your thoughts are increasingly consumed by trading.

From a mental health standpoint as well as a financial standpoint, it’s clear that you should avoid over-trading.

How to Stop Over-Trading

If you’ve already started over-trading, how can you stop? It can be difficult—but it isn’t impossible. There are several steps you can take to try and avoid the trap of over-trading:

    • Don’t fall into the trap of emotional trading: Make sure you support your trading decisions with logical analysis. If you cannot do this, you may not be making the trade for the right reasons.
    • Don’t trade more money than you have: Trading is always a risk, but you should have a clear idea of how much you can afford to lose. Trade accordingly.


  • Do diversify: Diversifying your portfolio can also help you avoid over-trading. By having more than one trading position open, you can spread your investments, which in turn minimizes the risk of trading.
  • Do draft a trading plan: Decide what your trading criteria are and how you will go about trading before chasing the first opportunity that comes your way. 


By following these steps, you can stop over-trading—or, hopefully, avoid it altogether!

In Conclusion

It’s clear, then, that over-trading is an extremely risky practice. If you recognize that quality is more important than quantity in trading, you are more likely to avoid this mistake. 

While it can be tempting to trade more and more frequently, it is unlikely that you will find success this way. The better, safer, and more profitable option is exercising caution and making high-quality trades instead.

By over-trading, you increase the possibility of losing or making a mistake. This is why, especially in the beginning, you should exercise patience and self-discipline. Learn all that you can about trading before making trades yourself. This will help ensure that you make good trading decisions that are more likely to turn a profit than trades that are ill-thought-out. 

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