Common trading pitfalls. http://www.financial-spread-betting.com/strategies/Spread-mistakes.html I think the dangers of trading are largely psychological. Mainly not being disciplined and rigorous enough about managing risk though psychological weakness. The difficult part is handling your psychology and trading even when you don't feel like it emotionally. Boredom in particular can lead to overtrading. What is overtrading? Overtrading is trading more frequently than the circumstances demand. When you overtrade, you lower your threshold for what is a good trade.