PsychologyMembers
Overconfidence & Overtrading: The Turnover Tax
beginner·6 min read·Tier 4
The more retail traders trade, the worse they tend to do. Overconfidence quietly funds a 'turnover tax' of spreads, fees, and slippage.
Activity feels like progress. More screens, more trades, more setups taken — surely that's how you get ahead? In retail trading the data points almost exactly the other way. The single most reliable predictor of how badly an individual trader does is, bluntly, how much they trade.
What the brokerage data shows
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