In the profession of trading or buying stock, nothing is guaranteed - there are only probabilities.

The key of having a winning trade is to pick the correct direction of the market/stock.

But if you make an error at this point, a positive trade become much more difficult to manage while a losing trade becomes a much higher losses.

I have seen a lot of trader, their core problem is not admitting when you are wrong and eventually lead to an equity blow up and an end of their trading career.

What we have to remember is that it is okay to be wronged, it is also part of the trading business. Even if you are a phenomenal trader, you will still be wrong -perhaps one-third of the time. Again, this is okay.

What is not okay, is NOT admitted that you were wrong and taking the loss.

Let the losses get bigger and bigger because you want so badly to be RIGHT. If you do this, you will not be a professional trader for long.

• Do not let your ego get in the way of trading.
• Do not let any personal bias get in the way of trading.
• Do not average down on a losing trade.
• Do not lower your stops on a losing trade.
• Trading is, in my opinion, the most difficult profession to master. The "Mind" part of trading or controlling your mind and emotions, and that is what makes trading so difficult.

Keep it simple – when you are wrong, Get Out. You have virtually no chance at success if you do not follow rule #1.

Best wishes,

Divergence Trader

Francis

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