Many people do not fail to cut losses, but rather — are unwilling to cut losses.
They always think, 'If I wait a bit longer, it will come back,' but the market never pays for personal fantasies. The result is: small losses turn into big losses, big losses turn into liquidation. 💀
📉 Trap Principle:
Loss aversion psychology: People are more afraid of admitting losses than they are of making money. Cutting losses means admitting defeat.
Emotional numbness: The larger the loss, the less willing they are to look at the market.
Wishful thinking: Every rebound is mistakenly seen as a 'turning point.'
🧩 The Logic Behind:
The market rewards execution, not fantasies. Cutting losses is not a failure, but a way to preserve capital for the next opportunity.
✅ Correct approach:
Set clear stop-loss points (for example: breaking key support levels / holding losses exceeding 5%-8%).
Don’t look at emotions, follow the rules: trigger stop-loss = execute.
Every stop-loss is a victory in risk control.
🔥 One-sentence summary:
Not stopping losses is not bravery, it's self-destruction. A true expert can afford to lose—because they understand 'cutting losses quickly.'