Have you ever done this kind of operation:
One order went in, but the direction reversed.
At first, you are only slightly at a loss.
You can still accept it and analyze it.
You look at the market and think to yourself:
👉 "It's fine, this kind of pullback is normal."
——
But the market did not stop.
It continues to move in the opposite direction.
At this point, you start to feel a bit uncomfortable.
But you didn't stop the loss.
You made another decision:
👉 Add one order
——
The reason you give yourself is:
"Let's spread the cost and I'll exit when it rebounds."
Sounds reasonable.
But from this moment on, this order has already gone bad.