Being a Greedy and Carefree
Most traders are no different from gamblers at the casino; they are all just chasing the ‘big win’. It’s an addictive game that gets in your blood and doesn’t get out until you blow off your trading account multiple or more times.
Stop chasing the big winner on every trade because more than likely it’s not coming. Just like Cricket focus should be on sustainability not on hitting 4’s and 6’s on each and every ball. The longer you keep chasing the elusive ‘big winner’ on every trade, the longer you are going to continue to not take profits when they are staring you in the face, and the longer you are going to remain in your cycle of losing, breaking even, and taking tiny gains as the market comes crashing back against you. So, start being realistic and serious in your trades.
Not Sticking to Single trading methods
If one strategy you are following give loss for few trades most of traders jump and try to learn some other strategy. The bottom line is that we do not ‘blend’ trading methods, but we need to stick to few trusted and back tested strategies. Most people who stick with trading long enough know learning some new trading system every now and then will increase your knowledge but it will destroy your trading. You need to learn few system, adjust yourself with your trading personality ,master them and keep repeating the process again and again.
Arrogance after Few Good Winners
Many traders fall prey to Arrogance and it ends up costing them dearly. After few good Winners they are blinded by their own arrogance and they are playing some game of pretending they are a pro trader even though their account balance proves otherwise. Many traders can’t even reach this point because they simply cannot swallow their pride and their egos; they don’t want to face up to the fact that they are behaving like a gambler in the market, even though they know it in the back of their minds.
You have to be willing to ‘wipe the slate clean’, and be willing to stop pretending that what you’re doing is working and simply start over fresh. Being humble will go a long way in trading, as men this can be a problem because we tend to have a ‘need’ to be right all the time.
Thinking too much
Many traders love to over-analyze, over-trade, over-leverage, and generally just be over-involved in everything when it comes to their trading. Thinking too much and being over-involved in their trading gives most traders a sense of ‘control’ over the market that makes them feel better. That really is what it all boils down to. The problem with this is that you cannot be in control of the market, you can only be in control of yourself, AND how you feel has nothing to do with the outcome of your trades. So be at ease with yourself and never do analysis in excess.