TOP 50 REASONS WHY TRADERS LOOSE MONEY

1. Many traders trade without a plan. 
2. Usually they liquidate the good trades and keep the bad ones. 
3. After several profitable trades, many speculators become wild and unconservative. 
4. Traders often try to carry too big a position with too little capital, and trade too frequently for the size of the account.
5. Some traders try to "beat the market" by day-trading, nervous scalping, and getting greedy.
6. They fail to pre-define risk, add to a losing position, and fail to use stops.
7. They frequently have a directional bias; for example, always wanting to be long.
8. Lack of experience in the market causes many traders to become emotionally and/or financially committed to one trade, and unwilling or unable to take a loss. They may be unable to admit they have made a mistake, or they look at the market in too short a timeframe.
9. They overtrade.
10. Many traders can't (or don't) take the small losses.
11. Many traders get a fundamental case and hang onto it, even after the market technically turns. Only believe fundamentals as long as the technical signals follow. Both must agree.
12. Many traders break a cardinal rule: "Cut losses short. Let profits run."
13. Many people trade with their hearts instead of their heads. 
14. Often traders have bad timing, and not enough capital to survive the shake out.
15. Too many traders perceive Spot/Cash markets as an intuitive arena.
16. Not following a disciplined trading program leads to accepting large losses and small profits. 
17. Emotion makes many traders hold a loser too long. 
18. Too many traders are underfinanced, and get washed out at the extremes.
19. Greed causes some traders to allow profits to dwindle into losses while hoping for larger profits.
20. Trying to trade inactive markets is dangerous.
21. Taking too big a risk with too little profit potential is a sure way to losses.
22. Often, traders do not recognize the difference between trading markets and trending markets.
23. Lack of discipline is a major shortcoming.
24. Trading against the trend, especially without reasonable stops, and insufficient capital to trade with and/or improper money management are major causes of large losses in the Spot/Cash markets; however, a large capital base alone does not guarantee success.
25. Overtrading is dangerous, and often stems from lack of planning.
26. Trading very speculative counters is a frequent mistake.
27. There is a striking inability to stay with winners. Most traders are too willing to take small profits and, therefore, miss out on big profits. Another problem is undercapitalization; small accounts can't diversify, and can't use valid stops.
28. Some traders are on an ego trip and won't take advice from another person; any trade must be their idea.
29. Many traders have the habit of not cutting losses fast, and getting out of winners too soon.
30. Many traders overtrade their accounts.
31. Spot/Cash traders tend to have no discipline, no plan, and no patience. 
32. Staying with a losing position, because a trader's information (or worse yet, intuition) indicates the deteriorating market is only a temporary situation, can lead to large losses.
33. Lack of risk capital in the market means inadequate capital for diversification and staying power in the market.
34. Some speculators don't have the temperament to accept small losses in a trade, or the patience to let winners ride.
35. Greed.
36. Not having a trading plan results in a lack of money management. 
37. Frequently, traders judge markets on the local situation only, rather than taking the worldwide situation into account.
38. Speculators allow emotions to overcome intelligence when markets are going for them or against them. They do not have a plan and follow it. A good plan must include defense points (stops).
39. Some traders are not willing to believe price action, and thus trade contrary to the trend.
40. Many speculators trade only one counter.
41. Getting out of a rallying counter too quickly, or holding losers too long results in losses.
42. Trading against the trend is a common mistake. 
43. Often, traders jump into a market based on a story in the morning paper; the market many times has already discounted the information.
44. Lack of self-discipline on the part of the trader and/or broker creates losses.
45. Traders tend to do inadequate research.
46. Most traders overtrade without doing enough research. 
47. Many speculators use "conventional wisdom" which is either "local," or "old news" to the market. 
48. Too many traders do not apply money management techniques. 
49. Many traders are undercapitalized. They trade positions too large, relative to their available capital.
50. Don't make trading decisions based on inside information. It's illegal, and besides, it's usually wrong.

There you have them, fifty rules from more than a thousand brokers who have handled more than 20,000 accounts. They've seen what worked, what didn't, and why. Following these rules will not necessarily lead to success. Breaking them could increase your chances of failure. Spot/Cash trading is not for everyone. Spot/Cash trading involves the risk of loss.