Regardless of background, education, experience and any other factors, every trader has to deal with:
- Ignorance – lack of knowledge is the number one factor people lose money in trading
- Greed – this includes risking more than one can afford and holding a winning position for too long. There is nothing wrong with trying to squeeze as much profit from a position as you can but your decisions must not be based on emotions.
- Fear – all traders know this feeling of watching the loss grow. Again, your decisions must not be based on a clearly defined strategy, not on emotions.
Dealing with these emotions is a never ending process and each trader must be always aware of them.