"To Err is Human", but in trading it is a common occurrence that people will intentionally do things that result in losses. Now we're not talking about losing trades that come about because of testing out a trading system or a specific indicator. Nor are we looking at simple errors made purely by accident. If profit is our our objective, then why would we do these things that are totally out of alignment with what we know to be right? This phenomenon has many very undesirable consequences that are experienced quite regularly in the trading world.

A person's confidence can take a severe blow when these events take place on top of losing money. Other after-effects often include quite a bit of putting oneself down for having made the mistakes. Depending on the magnitude of the error, this can be the start of a rather nasty cycle that perpetuates the problem and sets the stage for it to happen again. Until the root cause of the issue is discovered and the person does something to address it, the self-sabotaging behavior is likely to happen again and again. This isn't limited to new traders either.

To give you an example, one such trader (a real person that we'll call Mark) of over 50 years had been going through this month-after-month for over a decade since becoming an individual trader trading from home. Mark has done just about everything in the futures industry that there is to do. He spent time on soybean farms and at the shipping docks loading ships and coordinating orders and shipments. For about another ten years, Mark ran orders on the exchange floor. After that, he worked both for and as an introducing broker in the commodities industry until he decided to retire at the age of 59. Needless to say, Mark had plenty of exposure to trading, but for nearly fifteen years, Mark has been losing money. But why, and why does he continue?

Trading is definitely nothing new to Mark. As a broker, he was very successful. He's tried just about every strategy and system there is. He's pretty intelligent and knows his way around the computer and what he's looking at on the charts. Mark loves trading and is excited about getting out of bed every day to get busy with his trading. On a typical day, he might make $600 or lose $800. More often than not he loses. When his wife gets home from work (yes, she still works at the age of 70), he's usually brooding in his recliner after kicking himself and calling himself "stupid" or "idiot". In all these years, he still has yet to end a year in the black. He's also concerned about how much longer his wife is going to let him keep on this way.

In response to the question why he sticks with his current method, and why he doesn't make use of a system that he knows is profitable, he simply says that he doesn't because they are boring. This is very true: a well-planned trade, where you have already determined what you'll do before you get in regardless of the market move can be very boring. However... when you enter trades without a plan, or if you've done something outside your rules, the suspense can be very powerful.

Why do people take the time to read entire books instead of just skipping to the end to see if the hero triumphs or fails? Why do millions of people watch football games, rather than simply check the scores in the morning? It is the suspense, the excitement of not-knowing the outcome, that brings the excitement. The moments that are most enjoyed and fully hold our attention are when the ball is in the air and hasn't been caught yet, when the hero's fate is uncertain. In being human, there is a part in all of us that craves that excitement.

At the conscious level, making money is what everyone desires (who doesn't?). Many people decide to become traders because trading offers the potential for very significant financial gain. The real risk is that it also offers the excitement that another part of us craves at the subconscious level. If that part of you isn't being satisfied in other areas of your life, it is likely to find its way into your trading and seek satisfaction there. Excitement from not-knowing the outcome in your trading is where the results can be disastrous. The solution is to keep yourself regularly involved in activities in your life that provide sufficient excitement, and be okay with it if your trading is a bit boring - but profitable.

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