Problems Created by Trading Loss

When it comes to trading psychology, in order to be successful in the markets traders must master HOW TO HANDLE LOSS.

Loss aversion is being unable to accept a loss once in a trade. You tell yourself you’ll get out if you lose a certain amount, but just before getting stopped out you decide to hold onto the trade and let the loss grow. It is an unwillingness to accept and realize a loss; instead the trade is held, in hope that it will swing back in your direction.

Problems Created by Loss Aversion
Loss aversion causes you to deviate from your trading plan. Based on your Trading Strategy , you know that you will win about 60% of the time, just as an example, and that your method produces a certain amount of profitability aft

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