You know what causes people to lose a lot of money in trading?
When you place a short or long order and then start hoping that it will go as you planned.
When it starts going in your favor, you hope that it will go up further, then it starts going down and you again hope that it will bounce back in your favor again.
When it goes against you from the beginning, you start hoping that it will soon go in your favor, it goes a little bit in your favor, you again hope that it will go up further.
Then it goes against you again, then you again start hoping that it will go in your favor, eventually the position reaches the liquidation price, however you again hope that because it has made a lower or higher low, now you think that it will start going in your favor, you start increasing your margin and repeat the same story again.
What is the lesson here? Stop having hope for the outcome and hope that you learned a valuable lesson from that particular trade.
This is also my hope for myself and all traders who trade.
