Admitting we are wrong and losing money to boot can be extremely painful, and certainly something to avoid. Yet as traders, we are confronted with these two possibilities virtually every moment we are in a trade. Now, you might be saying to yourself, “Apart from the fact that it hurts so much, it’s natural to not want to be wrong and lose something; therefore, it’s appropriate for me to do whatever I can to avoid it.” I agree with you. But it is also this natural tendency that makes trading (which looks like it should be easy) extremely difficult.
