- Panic Buy/Panic sell.
In both cases, you will lose your money - Ignore Capital management.
If you ignore Capital management you will be gambler not trader
- Following a signal Without risk assessment or stop loss.
You will be like Jumping into the ocean without a lifeline jacket at, before do anything, look at your risk and reward and what your stop level is.
by this way you can set Your Own risk and know what you do.
Nice and perfect summary. The first has really dealt with many people as they failed to understand there are things to consider before taking part in any. Another point I would like to add is that many people are trapped or bag holders owing to their dependence on so called experts who will tell them what to buy, when to buy but will never tell them when to sell as it is all based on hype. Lastly, joining pump and dump groups has done more harm than good, we should learn to trade the right way.