This is hurdle most everyone goes through in their evolution in their money management. Why is it hard to take a loss? Why is it hard to let a win run?
Why is hard to buy or sell something on breakout? Where the price is much higher then what it was or where the price is much lower then where it was.
Remember remedial work or corrections in junior school ? Go to Staples/ WHSmith get yourself a ruled A4 notebook and write the following throughout the whole book "...My analysis, perceptions, beliefs and decisions on past,current and future market price action may be wrong at times..." When your hand starts to ache do 20 more pages, l did the same for stoplosses and changed immediately or l was faced with the prospect of writing out again
/bWhy is it hard to take a loss? the loss is not anticipated, and comes as a total surprise, and shakes the mental foundations and confidence, the loss on average is much larger then the minute to minute fluctuations. Thus when trading, the trader feels it would be prudent to wait for it to retrace a little before registering loss. /bWhy is it hard to let a win run? the ability to register a win in a account even though small, induces a sense of overconfidence in the trader, so the trader registers small wins instead of letting it run. The win is not anticipated either similar to a loss, so the surprise reward makes one want to push the button earlier.
Why is hard to buy or sell something on breakout? Where the price is much higher then what it was or where the price is much lower then where it was. people look at price as expensive or cheap, instead of just a number on the chart.