An individual’s psychological state can easily cause an individual to see his or herself as a looser, because he or she loses a trade. When he or she loses another trade, then this begins to validate such feelings. As such the ego can take over and convince an individual to make a choice that may not be wise, because he or she does not want to lose again. Therefore, it is important to accept small loses so that the ego does not take over, because cognitively one will make emotional decisions, unless he or she makes the choice to remove the emotion and follow a trusted trading plan.
- Don't let your ego intrude.
- Stick with original trading plan, and take small losses.
- Always be consistent.
"Small losses are just stepping stones to big wins!"
Originally published at Trader Ego – Week 32 – 4-Minute Drill for Traders