If you agree with me that not a lot changes in the markets you won’t mind that I site an old study and will see the benefit of this little reminder of mine.

In 1974 Blair Stewart completes a study of 8,922 brokerage customer accounts.

The following mistakes are found:

1) Speculators showed a clear tendency to cut profits short, while letting their losses run.

2) Speculators were more likely to be long than short, even though prices generally declined during the 9 years of the study.

3) Longs bought on weakness, and shorts sold on strength, indicating they were price-level rather than price-movement traders.

If you are currently struggling in your trading you might like to consider these three well repeated mistakes and develop a plan that you can follow so as not to fall foul of them.