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- Refusing to define a loss.
- Not liquidating a losing trade, even after you have acknowledged the trade’s potential is greatly diminished.
- Getting locked into a specific opinion or belief about market direction. I.E. “I’m right, the market is wrong.”
- Focusing on price and the money
- Revenge-trading to get back at the market from what it took from you.
- Not reversing your position even when you clearly sense a change in market direction
- Not following the rules of the trading system.
- Planning for a move or feeling one building, then not trading it.
- Not acting on your instincts or intuition
- Establishing a consistent patter of trading success over a period of time, and then giving your winning back to the market in one or two trades.
1. Self-reliance: A man must think for himself and must follow his own convictions. Self-trust is the foundation of successful effort.
2. Judgment: That equipoise, that nice adjustment of the faculties of one to the other, which is called good judgment—essential to the speculator.
3. Courage: That is, confidence to act on the decisions of the mind. In speculation, there is value in the dictum: Be bold, still be bold; always be bold.
4. Prudence: The power of measuring the danger, together with a certain alertness and watchfulness, is very important. There should be a balance of prudence and courage; prudence in contemplation, courage in execution.
5. Pliability: The ability to change an opinion, the power of revision. He who observes and observes again is always formidable.