Many people can’t bring themselves to set a stop loss because they treat it as proof that “I was wrong,” and their pride
gets in the way. Try looking at it this way: a stop loss is insurance you bought in advance, and the premium is that small loss.
The difference between a professional trader and a gambler isn’t who’s more accurate, but who allows themselves to be wrong.
The steadiest traders I’ve ever seen cut their losses more decisively than anyone when they’re wrong. 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 go to stop out, tell yourself:
This is an admission ticket, not a verdict.
What do you think? Share your experiences in the comments.