Trading too big to “get back to even”.
Going “all in” on one trade that they believe they just can’t lose.
Being on the wrong side of an asymmetric trade. Being short options for possible small gains if right but big losses if wrong. In the long term eventually this blows up.
Fighting a trend over and over again, a trend that a trader or investor can not even believe is very dangerous because shorts look better the higher a stock goes and longs look like they are getting a bargain the lower the stock sinks.
In a losing trade the trader starts thinking “add more to a losing position” instead of “I need to cut my loss short”.
The trader believes they are right and the market is wrong.
Traders are trading markets they do not even fully understand and a trader must fully understand the risk and leverage involved in currencies, futures, options, and commodities to prevent possible blow ups due from ignorance.
If a trader can tightly control risk and position sizes this will get them closer to getting in the club with the 10% of winning traders.