They lack discipline: It takes an accumulation of knowledge and sharp focus to trade successfully. Most traders would rather listen to the advice of others than take the time to learn a trading system. Let’s face it: Most people are lazy when it comes to trading. Although money may be the most important concern they have, and earning it, the most important goal they work towards, learning how to invest it is low on their to do list.
They are impatient: Traders have an insatiable need for action. It may be the adrenaline rush they’re after. It may be their gambler’s mentality. It may be they feel life is passing them by, and they say, It’s now or never. Trading is never: now or never. Trading is about patience and objective decision-making.
Traders do not trade objectively: Many traders have the habit of not cutting losses fast enough. It goes against their grain to sell. At the same time they often get out of winners too soon. It sounds simple, but it takes emotional disengagement to trade objectively.
Traders personalize losses: Some speculators don't have the temperament to accept small losses in a trade. They take each loss as a personal failure.
Traders are greedy: They try to pick tops or bottoms in hopes they’ll be able to time their trades to maximize their profits.
Traders won’t admit to reality: They are not willing to believe the only truth there is: The truth of price. As a result, they act contrary to the trend, and, deluding themselves, they lose.
Traders buy and hold: Out of fear, they hold on to losers, anxiously watching them tank, but taking no action. When they finally sell, they are angry and embarrassed, yet they still buy and hold because they are rigid about change.
Traders act impulsively: They often jump into a market based on a story in the morning paper. The market has already discounted the data, or it is outdated and misleading information.
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