#CryptoUsersHit18M
The biggest mistake traders make is being patient with loss and not being patient with profit, and this phrase summarizes a common psychological behavior that negatively affects trading results. Let's break it down further:
1. Patience with loss:
When the trade starts to move against the trader's expectations and losses start to accumulate, the trader feels denial and fear of making a loss.
Instead of closing the trade and taking a small loss, the trader remains patient in the hope that the trade will return to the entry point or make a profit.
This small loss often turns into a big loss, which leads to the collapse of the account in the long run.
2. Impatience with profit:
On the other hand, when the trade starts to make a profit, the trader feels afraid of losing what he has achieved, so he closes the trade early.
This behavior limits the potential for profit, because the trade may be in its early stages and could have made greater profits.
Profit requires patience: Letting winning trades grow according to a clear strategy enhances profits.
Loss requires resolution: Closing losing trades early protects capital.
Hence the importance of risk management and psychological discipline, which are the key to success for any professional trader.#BTC