- A big ego that wants to prove they are right by stubbornly staying with a position that is wrong becasue they want to be right eventually so bad.
- A trader that want to prove he is a hot shot by trading big position sizes especially in options or futures.
- Not wanting to take a stop loss and instead just hope the trade comes back.
- Trading with emotions instead of a trading plan can get very expensive very fast.
- Being a bear in a bull market.
- Being a bull in a bear market.
- Being overly eager to start trading with real money before fully testing out a trading system.
- Trading without doing adequate homework on how to win.
- Dollar cost averaging down in a trade is many time expensive to fight that trend.
- Ignoring the charts and just trading your opinion.
- Ignoring the probability of the risk of ruin based on your current position sizing.
- Not really understanding the true danger of ‘Black Swan’ and ‘Fat Tail’ events.
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