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Top Ten Blunders

I was trying to think of a reasonably concise list of the mistakes traders make on a regular basis and came up with the following.

•Under capitalized.
•Reliance on external sources.
•Lack of a trading plan.
•Inconsistent application of a trading plan.
•Not taking losses.
•Cutting profits too soon.
•Misunderstanding how markets operate.
•Lack of confidence.
•Performance anxiety.
•Fear of the unknown.

Any others spring to mind?



  1. Assuming that you won’t make errors.
    Trading too-large position sizes early in your trading career. (Assuming Risk that is beyond your proven capability)

    I learnt these the hard way…

  2. Justin Keane says:

    I will put this above my PC as a friendly but very stern reminder to myself. This is a very good list to start off my first year.


  3. The unwillingness to change or adapt as markets dictate that you need to.

  4. How about ‘lack of or inappropriate education’…..related to some of those on your list, but I think it could seen as a mistake on it’s own.

  5. I was going to suggest that I could “over analyse” that list for you and come up with so many additional choices that I would be paralyzed into not making a decision at all, but then I procrastinated.

  6. Nice Tyrone!

    My gosh, there are so many mistakes.

    To my mind, a few more of the biggies; Not having a good environment from which to trade (psychologically, emotionally, and home/trading location). Overcomplicating. Impatience. Not recognizing biases and ignoring what doesn’t fit with your picture and loving what does. You mentioned fear and lack of confidence, but there is also being ruled by greed or overconfidence. Not accepting reasonability/learning from your mistakes. Having unrealistic expectations. Approaching trading like it’s warfare – trying to beat the market. Overtrading.


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