There are common factors, which can be observed through most of the successful Trader Legends:They have a System which they strictly follow.Most of them have a trend-following trading style.Most of them have a mid- to long-term approach.They have no fear and greed mentality.They have absolute discipline and stick 100% to their system.Their trades are fully planed; they are prepared for all scenarios in advance.They know that a system goes through bad times and good times. Cut losses early and let profits run.Their systems fit to their personality.
Some of these points sound logical and I see people nodding their heads. But in reality the average investor behaves completely different. Some of them burned their fingers over the last three years and some even lost a fortune. Here are some examples of observed behaviour patterns:Losses are not cut early enough.Investment with a short-term horizon become long-term horizon in hope of raising prices.People listen to the advise of their investment Brokers and Analysts.People invest in hot stocks recommended by colleagues of their colleagues.People have no plan for their investments.Money Management is not considered at all.People use trading styles which do fit their personality.Greed and fear is omnipresent.