There are 2 kinds of traders in losing positions:-
1) Neurotic, 2) Psychotic
Neurotic = Is a person who says 1+1 is 3.
in trading this kind of a trader misjudges the trend and situation.
Psychotic = Is a person who knows 1+1 is 2 but hates it!
in trading this kind of a trader keeps holding tight to a losing position on one or the other self-soothing pretext.
If we are neurotic, we are either ignorant or an escapist.
If we are ignorant, we should learn more and trade less.
If we are escapist, we are in for rude shocks till we are no longer escapist or no longer in the market.
If we are psychotic, we are either self-hypnotised wishful amateurs or are lame ducks waiting to be swallowed alive by crocodiles on the trading shores!
so, the moral of the story is
1) train eyes to see the truth
2) once the truth is known, act!
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