Some traders

Or maybe many of them

Use seemingly rigorous economic analyses to trade

Many though get married to their positions

Loyalty to ideas is not a good idea for traders or anybody else for that matter, we need to remain or try to be critical of our ideas

Bad traders tend to change their story

They become investors for the long haul when they are losing money

Switching stories to fit recent reversals of fortune

Nothing wrong with being an investor for the long haul

However when traders do this they are often postponing their decision to sell

They are in denial

These people do not have a game plan as to what they will do in the event of losses

They show an absence of critical thinking when things are going down

And these people do not like selling when it is even better value

Their failure is to measure what they consider value to be

They might on occasion be right however consideration that they might not be is also an intelligent approach

Denial is when they continuously ignore the message from reality

Traders come in all shapes and sizes however they all live under stress

Denial might work in other professions but not in the markets where mistakes are punished heavily and publicly

Some traders will survive some won't

Those that do survive are more open to reality and are able to make their own decisions

Those that follow the herd might survive for a while but sooner or later get caught out

Trading is not for the faint hearted

Some traders