How does your attitude towards risk change as you are in a trade. Everyone always says to cut your losses and ride your winners. However, its human nature/psychology to do the very opposite. Studies have shown that as people with paper losses, become more risk seekers when they actually should become risk averse and exit the losing trade. Additionally, as the average person has a paper gain, they become risk averse when they should be riding their winners and become risk seeking. How does anyone utilize these psychological principles in their trading. It would appear that as a trade moves against you, you should either exit ahead of your stop or try to get out at a smaller loss rather than waiting for your hard stop to get hit. I've never had problems taking a stop loss, but that's because I use a tight stop, which is sometimes too tight. Its frustrating to watch the market hit my stop and then turn around. It would perhaps better to increase my stop size, which would keep me out of the noise, but look for an exit if the trade doesn't go in my favor. Alternatively, as the trade moves in your favor, you should continue to ride the trade, right? However, the big question is how long? Trends don't last forever, so shouldn't you at some point trail your stop or use profit targets? However, both of those are risk aversion methods. Where's the balance?