· Unorganized environment – You desk and computer should be well organized. Material and all the “noise” not related to trading should be eliminated. Don’t try to multitask.
· Physically not prepared – Even if you are not a day trader when you prepare yourself for a trade you should be able to focus for a longer period of time. If you are hungry, tired or sick you won’t able to do that.
· Mentally not prepared – You should have a clear and proved trading plan and stick to it. You can’t change it in the middle of trades. You should feel confident and comfortable with the knowledge you accumulated about trading.
· Emotionally not prepared – If you have strong emotions such as anger, sadness, and disappointment about trading then you are not prepared. The stock market doesn’t care about your feelings.
· Unable to execute a trading plan – If you can’t follow your trading plan and you hesitate when you enter or exit a position then you are not prepared.
· Not being patient – Patience is very critical. A stock could be a great candidate for trading but you have to wait out the right moment. Jumping into trades too early can end up in painful losses.
· Unable to filter out the news – You have to learn what news is important and what is just noise. The bulls and bears have always something to say and both of them can’t be right.
· Telling everybody about your trades – When you talk to your friends and sometimes strangers about your trades it’s hard to explain when you are wrong. The best thing to do is to keep it private.