Tilt

It’s a poker term, but it’s a great concept for traders to understand. Tilt can come in many forms, but its essential concept is when one is not performing at a peak level. At a poker table, it’s usually cause after a correct play is beaten by a weaker hand; and, the resulting frustration causes the player to throw good money away by making poor plays. In trading, tilt usually refers to overtrading, but can also be trading without stops, targets, or trading too large for one’s account size.