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If I had to select one thing that causes most traders to fail, it would be wrong expectations. I know I sound like a broken record, but consider this: when someone wants to become and engineer or an accountant, do they expect to achieve this in a few months? No, they fully expect spending at least 4 years and tends of thousands of dollars in University (not to mention becoming a doctor or a lawyer). And yet, many people read all the hype and expect becoming experts after a few months. When I just started SO, I got an email from one of my Seeking Alpha readers. He told me that he is a big fan of my articles and asked how he can learn more. He wanted to make it his new career. He asked me if I can recommend any books or internet sites to learn/practice the options strategies. Then he said that he is new to trading options, he set aside a small amount of money in hopes of doubling it at least yearly. Don't you find it amazing? The guy admits he is new to options, but wants to double the account "at least yearly". My reply was: "There is a lot of hype surrounding options trading. Some "gurus" out there will make you to believe that doubling your account every 6-12 months is an easy task. If it was, we all would be millionaires by now. My advice to you: if you just start options trading, preserving your capital during your first year of trading would be a great achievement" I didn't hear from him since then. He probably went to one of those charlatans who promise to double your account in one month and charge you few thousand dollars for a week of “one on one consulting”. Many people will tell you what you want to hear to get your hard earned money. Here is another email from one of our former members: "I'm new to options trading. I'm retired and am hoping to make $1.25 million per year by trading" This member cancelled after just 2 weeks. Why I'm not surprised? And honestly, I would be very interested to know the psychology behind people thinking they can have no experience with something, probably not even know how to place an order, and start making money with options right away. A 7 figure income in this case. But maybe it's the same psychology that makes people to believe that they can lose 50 pounds in 2 months without any effort..

think my response would have been, "i know a guaranteed way to have an account balance of 1.25 million your first year of trading.. start with 2.5 million and quit when you reach 1.25. many have done it, so can you." HA!

In addition to @InvestTrader, something else that dovetails into position size. Don't "day trade" your positions, and if you are, then ask the nice nurse for another shot and go back to your computer. Seriously, what I mean is, if I have a position open that is getting beat up, I try not to focus on the chart constantly, watching it's every move, this very often leads to me closing or altering the position, in other words, over trading. Sure, there are times I must focus on as specific trade/ticker, but I don't have the temperament to watch the screen, filled with angst like a day trader, finger hovering over the send button. And yet, I still often do it, so I have to constantly control that tendency. I think that one thing has cost me more money than any other.

For me, finding the appropriate trade size was one of the things that had the most impact on my trading. When the trades are too large for our account or for our ability to handle a loss, the probability of panicking and making wrong decisions is enormous. For me, it is comforting to enter a trade and calmly face the worst possible scenario as something I can take or accept. This gives me the necessary tranquility to make rational and calm decisions regarding trade management. It’s often the difference between winning or losing

Hi June I see you joined yesterday. You have plenty of posts to learn. There is wealth of knowledge here. Three years is not enough to be profitable trader. It takes 10+ years to be a really profitable trader in most market conditions. Take your time and be prepared for long haul. I have been through 3-4 liquidation events in my career and still trading and going strong even in todays challenging times. You need passion . With passion and perseverance and guidance and hope and discipline and hard work and courage and tiny amount of luck , you can join the elite club of consistently profitable traders who depend on trading for their day to day living.