Many people can't bring themselves to place a stop-loss because they treat it as proof that “I was wrong,” and their pride
can't get past it. Try looking at it another way: a stop-loss is insurance you've bought in advance, and the premium is that small loss.
The difference between a professional trader and a gambler isn't who gets it right more often, but who allows themselves to be wrong.
The steadiest traders I've ever seen cut their losses more decisively than anyone. Because they know: whether this trade is right or wrong
doesn't matter; what matters is the expected value over a hundred trades. The next time your hand trembles as you place a stop-loss, tell yourself
this is the price of admission, not a verdict.
What do you think? Share your experiences in the comments.