How Traders can Lose on Profitable Trade Set up

In terms of trading, this means that a trader actually not have to be afraid of loss. Especially not if the money risk is sensibly chosen. Nonetheless, money losses always lead to Fears and associated misconduct.

As a result, Trader Develop a negative spiral that leads to even greater distortions in trading

An example: You are trading a good entry signal. The chance Profit to loss is 5: 1. So you could be five times that win what you might lose.

You will be on the trade stopped, but get back on again because the signal still makes sense

makes. Which is correct, since the chances have remained the same.

Then you will be stopped a second time. Now you are lacking the courage to enter

Record the signal the third time and ignore the setup

.

Your thought on this is: “Oh, it won’t work anyhow! I don’t want a Lose here

Why Make the 3rd trade after the losing on last 2 trader . I’ll run out of money soon

and Bust my trading account.

At this thought you feel a vague fear. This feeling is subconsciously confirming that you are doing the right thing. Fear Let you  ignore the setup and your fear will dissipate.

Some time later you are curious and want to know what has become of your entry signal. To

your surprise, you find that the third trade has recovered all your loses and you are in Profit. 

You would actually have made five times as much on that trade can. You get annoyed and risk twice as much on your next trade, in order to unconsciously regain your lost profits.

Because the People tend to want to do something in unsafe situations, and be it so nonsensical. It makes him feel better than Inability to act is almost unbearable for him.