I came across this on another forum and found it quite good so I thought I'd share it here:
The following is a direct quote from TradeGuider.
During a recent TradeGuider seminar I talked about the reasons that
traders are constantly on the losing side of the market and I
highlighted some of the common traits I find when I talk to these
losing traders. Here I have listed those traits and I have an article
I read from, by a long standing TradeGuider customer Rakesh Kumar, who
I thank for allowing me to use his document. If you would like a copy
email me back and I will send it to you. I hope you enjoy reading it
and I wish you good trading and constant profits.
1. Losing traders do not have a trading plan.
2. Losing traders do different things on different days, and totally inconsistent.
3. Losing traders have no BELIEF in their chosen strategy.
4. Losing traders think and act like gamblers.
5. Losing traders are always searching for the holy grail of trading, but it doesn't exist.
6. Losing traders often use too many systems and too many indicators, so they never know what the chart is really telling them. Tom Williams, inventor of Volume Spread Analysis and a former syndicate trader says "The chart never lies, if you know how to read it correctly".
7. Losing traders are often under capitalized, taking large trades with poor risk/reward ratio and no money management skills.
8. Losing traders do not understand how markets work, often believing that price moves markets, but it dos not. The forces of supply and demand and the trading of "Smart Money" causes prices to move.
9. Losing traders get confused by slick sales and marketing of trading systems that claim to have a high percentage of accuracy, so end up trying many systems that almost always result is losses.
10. Losing traders ALWAYS follow the herd, and get locked in to bad trades.