The Difference Between Scalping and Overtrading 2025

Many amateur traders do not know the difference between scalping and overtrading, and this causes them to suffer losses due to overtrading. In this article we will learn the differences between scalping and overtrading and examine each one. By learning the difference between the two, you can protect yourself from the potential losses that overtrading can cause.

What is overtrading?

When you open too many positions or trade in a period of time, your concentration will be very low and your chances of making mistakes will increase, this is called overtrading. In overtrading, the trader usually acts without a specific strategy and tries to trade every movement in the market.

photo by TradingView

In the picture above you can see an example of overtrading where many of the entry points are also wrong and cause us losses.

What is scalping?

In scalping, we open positions for a short period of time, such as a minute or several minutes, and make a profit. The goal of scalping is to profit from small market movements. In the example below, you can see an example of scalping trading. In the example below, we have shown you the entry points according to the scalping strategy, which includes breaking patterns and powerful candles.

photo by TradingView

In this article we have clearly learned the difference between overtrading and scalping. Note that if you are a very good trader from a technical point of view, but do not follow the risk and capital management strategy, you cannot be a good scalping trader and make profit.

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