A computer implemented method, data processing system, and computer program product for selective monitoring of individual transactions in an instrumented software application. In response to receiving a new transaction at an entry point, a monitoring policy is checked to determine if the monitoring policy indicates that the transaction should be monitored. If the monitoring policy indicates that the transaction should be monitored, a determination is made as to whether the system resources are operating at a predetermined system condition defined in the monitoring policy. If the system resources are operating at the predetermined system condition, the transaction will be monitored. If the system resources are not operating at the predetermined system condition, the transaction will not be monitored.