Most of traders makes mistakes and some of them are so universal that almost all of us made them or still making it .
1 – Knowledge Deficiency
Most of traders in market literally jump the market like its a war and they have to win , many of them even dont know what exactly they are trading they just follow numbers and jump into it , One should take into consideration its a business not a gambling where your dice would earn for you
2- Over Leverage
Most of us trade with over confidence and our leverages are so high and we think if we trade big we earn big but most of traders forget if they loose they may end up wiping their entire account in 3-5 trades , Ideal leverage is actual equity in cash and if you trading in future then you should not be taking stoploss of 2-3% per trade
3- Paper Trading
This is double edged sword some may disagree on this one and some may agree , i personally believe paper trading should be done before trading with actual money but i seen many of traders become over confident in paper trading and they tend to bet big and end up loosing entire capital
4- Trading News
Many forex and commodities trader tend to take a small bet near major data and most of time they end up loosing it , but they like the thrill of major data and they keep taking bets which hamper their account equity and usually effect long term performance of account’s profits
5- Lack of courage
Markets are not a 9 to 5 job where you work and you get paid , its a business where you need to take risk and its a very tough business where you need to swallow many losses before making profit , Most of trader’s moral goes down as soon as their account starts dipping into losses , You should be trading with that money which you can afford to loose