All the old and bold traders and investors will tell you – there are just some things a trader or investor shouldn’t do.

That’s right – you may know a trader or investor who has made these mistakes and become the “statistic”: a recent study found that over 82% of traders made significant losses and closed their accounts after 9 months. For the long term investors it is slightly better, but that doesn’t account for the thousands of retiree who had to return to work after the 2008 bear market.

For this reason I’ve created a list of the 10 most common mistakes traders or investors make that lead to failure. This knowledge can be extremely powerful – just do the opposite of everything on the list and it will bring you greater success in the markets! And click on the link at the bottom for even more reasons and things to avoid.

If you’re ready, then here we go!

1: They don’t have a trading plan. It is such a seemingly simple thing – list your rules, your money management, and yet hardly any new investors take the time to do it. Needless to say, they’re usually the ones who go bust.

2: They get attached to a particular stock. Your parents hold the stock. Your boss holds the stock. Your friends are all in the stock. The only thing is – it is sinking faster than the titanic. Don’t get attached! And have a pre-determined point of exit. It could save your account.

3: They don’t have the discipline to stick to their strategy. For example a long term investor who gets shaken out of the market by a short term price fluctuation. If you have a strategy, stick to it. If it really doesn’t suit you, change it.

4: They think the market will stay “this way” forever. If there is anything that’s true about the markets, it is they are ever changing. What works today may not work tomorrow, and today’s bull market will become tomorrow’s bear. The market will never “stay this way forever”. Be prepared, and never stop learning.

5: They have a plan, but they don’t follow it. So they have done the research, they’ve tested their theories, but when they actually put money in the market they break all of their rules!

6: They give up too quickly (and don’t let their expectancy work). Many methods will work over the longer term, given a positive expectancy. But some traders or investors get discouraged and give up, right when the market conditions are about to change in their favor.

7: They blame others when things go wrong. Ah blame. It’s so easy to do! After all, if it’s “their fault” you don’t have to change, and your ego goes unruffled. But the thing is when you blame others, you lose the lesson. And when you are trading or investing, you definitely cannot afford to lose a single lesson.

8: They don’t watch the trend. Some of my best friends are extremely successful fundamental investors. But even the most successful fundamentalists lost money in 2008 (and some of the best fund managers got absolutely hammered), because they didn’t keep an eye on the trend. The stock market will lead the overall economy by approximately six months, so watch for a trend to emerge regardless of company balance sheets.

9: They think that investing does not mean hard work. Ah the carefree life of a trader – lying on the beach making casual calls to your broker. What a life! And what a load of marketing rubbish. The truth is, becoming a trader or investor is hard work. You need to research and manage your positions, while not losing your head.

10: They hound people for tips instead of learning the ropes. How people love tips! Some people will do anything for a “hot tip” in the market. But it’s usually at the expense of actually learning the ropes themselves. And if you buy using someone else’s tip, when do you sell?

There are 31 MORE reasons why traders and investors fail. Find them all out for free at Dave’s site www.ASXmarketwatch.com.