overtrade

Countless studies show that fund investors who overtrade their accounts wind up lagging the markets and the average funds; fund investors are better off buying-and-holding a slowly-evolving asset allocation — the way they do in a target-date or life-cycle fund — than trying to trade their way to bigger profits.

That leads them to overtrade and take excessive risk.

John Bogle, founder of the Vanguard Group said he is concerned about the temptation to overtrade more narrow ETFs.

"Our experience has shown time and time again that many SMEs run out of cash during the recovery phase, as there is a real temptation to overtrade," Palmer said.

Overtrade, ō-vėr-trād′, v.i. to trade overmuch or beyond capital: to buy in more than can be sold or paid for.—n.