What is Over Trading?

Overtrading is simply doing too much - although this is a rather simplistic explanation. Doing too much 'how' and 'what' - these are the important bits. Overtrading is where an investor can get themselves in trouble by having too many open positions without sufficient money in the 'pot' to deal with it if some of the positions begin to fail.

If your current positions aren't doing too much, it may be tempting to open new ones, just for something to do. Resist this urge! If the markets are quiet, it might just be the quiet before a storm, and more positions can be harder to deal with if it all goes the wrong way. It's much better to have a strong Spread Betting strategy and to stick with it rather than trading on luck or instinct. 

At all times, be aware of what your risk is. You can read more in the risk / exposure areas of the website, but always remember, could you afford it if your long position (up bet) company went bust, and you were required to pay the entire value? Of course, it's also important to manage your risk using stop losses to prevent this sort of issue.