overtrading
Too many transactions
Overtrading is expanding business activity beyond what available capital can sustain—taking on more orders, inventory, or commitments than cash flow can support.
A company may be profitable on paper but overtrading leaves it unable to pay bills as they come due: The restaurant chain collapsed from overtrading after opening too many locations too quickly.
In securities trading, overtrading means excessive buying and selling, often to generate commissions rather than returns.
Borrowed capital for amplified returns
- marginEdge of a page
- futuresContracts for future delivery
- optionsAvailable courses of action
- forexCurrency trading market
derivatives · commodities · cryptocurrency · volatility · arbitrage · gambling · FOMO · speculation
leverage
Borrowed capital for amplified returns
forex · derivatives · commodities · cryptocurrency · volatility · arbitrage · gambling · FOMO · speculation
exhaustion
State of utter depletion
- investment pitfallspanic selling, overleveraging, overconfidence, poor timing, herd mentality
- investingstocks, stock, bonds, investing, investor
overtradingrisk aversion
Preference for certainty
capital preservation · prudence · caution · risk management · financial prudence