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Making mistakes in your trading is not cheap. Here are the ten most expensive things a trader can do. This does not apply only to new traders, even professionals with long track records can make these fatal flaws and cost themselves money.

  1. A big ego that wants to prove they are right by stubbornly staying with a position that is wrong becasue they want to be right eventually so bad.

  2. A trader that want to prove he is a hot shot by trading big position sizes especially in options or futures.

  3. Not wanting to take a stop loss and instead just hope the trade comes back.

  4. Trading with emotions instead of a trading plan can get very expensive very fast.

  5. Being a bear in a bull market.

  6. Being a bull in a bear market.

  7. Being overly eager to start trading with real money before fully testing out a trading system.

  8. Trading without doing adequate homework on how to win.

  9. Dollar cost averaging down in a trade is many time expensive to fight that trend.

  10. Ignoring the charts and just trading your opinion.

  11. Ignoring the probability of the risk of ruin based on your current position sizing.

  12. Not really understanding the true danger of  ‘Black Swan’ and ‘Fat Tail’ events.