For me it is #2. After a big winning trade, I need to be especially on guard against taking a B or C grade setup.
I feel I have gotten better with PA trading. However, issue is trying to get braver to add another contract and set tighter stops and targets for the 1st contract. These are all just 1 contract traders.
For me, this is #2. Sometimes there is a desire, based on emotions, to quickly work off the loss from an unsuccessful trade.
it’s definitely sticking to stop-loss. It's tough not to move it when you’re in the red, but sticking to it is key for long-term consistency.
The hardest part of risk management is controlling emotions. Many traders struggle to stick to their plan and end up making impulsive decisions. Setting stop losses and managing trade size helps, but actually following those rules is the real challenge.
I think this is because many people cannot accept losses as an integral part of trading. So they try to sit them out, trading without stop losses in the hope that the market will soon turn around and the trade will go into profit, thus only increasing their minus and the chance of losing the entire deposit.
Exactly! Many traders struggle to accept losses and end up holding onto bad trades. I think having a predefined exit plan helps, but sticking to it is the tough part. Have you found any strategies that help with this?