Why most new investors/traders lose thousands (and what you can do about it)

I have spent past couple years researching what causes new investors and traders to consistently lose money… patterns that are rarely discussed in traditional finance books. While writing a book on the subject, I noticed some surprising trends.

Three common traps every trader falls into:
1. Chasing hype: buying stock because “it feels right” or everyone is talking about it.
2. Ignoring red flags: small warnings signs in chart or social sentiment are overlooked.
3. Emotional overthinking: overconfidence or fear can destroy even well researched trades.

I’m genuinely curious, which of these trap have you fallen for or seen friends/family fall for?

Have you ever read a finance book that actually warned you about these mistakes or do most books just gloss over emotional side of trading?