Then, when too much ego gets involved, the result is emotional trading. Frequently, traders judge markets on the local situation only, rather than taking the worldwide situation into account. Speculators allow emotions to overcome intelligence when markets are going for them or against them. They do not have a plan and follow it. Some traders are not willing to believe price action, and thus trade contrary to the trend.
Many speculators trade only one commodity.
Getting out of a rallying commodity too quickly, or holding losers too long results in losses. Trading against the trend is a common mistake. This may result from overtrading, too many day trades, and under-capitalization, accentuated by failure to use a money management approach to trading futures. Futures traders tend to do inadequate research. Most traders overtrade without doing enough research.