Can Trading Less Make You Better?

Want to be on the show? Send us a question, a voice note or a quick video to [email protected] Can placing fewer trades actually help you learn more and become a more disciplined trader? In Episode 8 of Markets and Mindsets, Paul and Isar are joined by Aoife, an experienced investor preparing to move into active trading. After noticing how easily she overtrades on a demo account, Aoife asks how to build better habits before real money is on the line. The conversation explores why demo trading cannot fully recreate the emotional weight of a live position, how the urge to stay busy can create an illusion of productivity, and why making fewer, smaller trades may actually help you learn faster. The team also explain the difference between open-loop and closed-loop learning, and how structured reflection can turn each trade into useful feedback. From journaling and voice notes to alarms, quarterly letters and clearer time horizons, the episode shares practical ways to reduce impulsive decisions and build a repeatable process before pressing the button. In this episode: - Why demo accounts are useful for mechanics but limited for understanding emotion - How using very small amounts of real money can make decisions feel more meaningful - Why traders often mistake activity for productivity - How boredom and a bias toward action can lead to unnecessary trades - The difference between open-loop and closed-loop learning - Why trading less can sometimes help you learn faster - How time horizons should shape the way you manage investments and trades - How journaling before and after a trade builds self-awareness - How alarms and written reminders can create a pause before acting - How smaller positions can provide realistic experience without creating major consequences Chapters: 00:00 – Introduction: The Overtrading Trap 00:14 – Meet Aoife: Moving from Investing into Trading 01:01 – Why Demo Accounts Can Encourage Overtrading 03:23 – Starting Small with Real Money 03:53 – The Illusion of Productivity 04:50 – Open-Loop vs Closed-Loop Learning 06:28 – Why Trading Less Can Help You Learn Faster 06:51 – Time Horizons and the Urge to Meddle 10:31 – Journaling Before and After a Trade 13:06 – Using Alarms and Simple Systems to Pause Enjoyed the episode? Subscribe to Markets and Mindsets for more conversations exploring the psychology behind better investing. If you enjoyed this episode, leave a rating or share it with someone looking to become a more thoughtful investor. Capital at risk. The value of investments can go down as well as up, and you may get back less than you originally invested. This podcast is for educational purposes only and should not be considered investment advice.