- They buy overextended stocks (well past the correct entry point)
- They buy too much stock (position size is to large. Exposing the trading account to huge losses that are hard to come back from)
- They buy cheap stocks (play around with low priced stock and penny stocks. Thinking they can own more shares, instead of just trading the best opportunities and adjusting the share size)
- They buy stocks that are not coming out of sound base patterns (they jump into any stock that seems to be moving at any level)
- They buy the wrong industry groups (they don't focus on the leading groups. They buy stocks in industry groups that are weak, weakening or lagging)
- They hold onto losing stocks (they get out of winners fearing they may give back the money, and hold on to losers hoping they can get back to even. This it totally wrong, they are fearing when they should hope and hoping when they should fear)
- They move too much money into the market too soon (they go in fully at the pivot and don't give the stock a chance to prove itself. Instead of building a Position)
- They trade off of emotions (Hope, Fear and Greed etc. Instead of just realizing that every trade you take can be a winner or loser. Just trade your system)
