I used to struggle most with #2 (letting small losses turn into big ones) and #9 (hoping for a rebound), especially early on when I believed “it’ll come back.” That mindset turned manageable losses into painful lessons. The market eventually taught me that capital preservation is priority one, and protecting the downside is what allows you to stay in the game.
Over time, I’ve grown to lean strongly toward strict stop-losses. They help remove emotion and force accountability. When a trade hits my predefined limit, I exit; no hesitation, no bargaining. I’ve also learned to size positions smaller so stops don’t feel punitive.
One turning point came from a tech trade that fell 40% while I kept averaging down, convinced it would recover. It never did. That loss reshaped my approach entirely; I began journaling trades, defining risk before entry, and respecting every stop. Since then, I’ve realised consistency and discipline, not prediction, drive long-term success.
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