there are two reasons
why you will pull the trigger of the rifle
in the jungle
in front of a lion!
one
to protect yourself.
second
to hunt the lion.
the lion is likely to get killed
in both the cases
but
there is hell of a difference
between the two motives!
in one
you are defensive
in other
you are on the offensive
one is full of fear
other is full of confidence
similarly,
every trader has two reasons to trigger the stop loss
one
to prevent loss
second
to gain profit
again, there is hell of a difference between the two!
if first one is the motive
you will not trigger the stop loss
because your amateur mind will not be ready to bear even the small loss till that time!
and as far as the second reason
to pull the stop loss trigger is concerned
an amateur trader won't understand it!
he fails to see how triggering the stop loss
can gain him profit!
this is the fundamental reason
why amateurs don't honour the stop loss!
in the words of Harv Eker
the rich play 'to win'
the poor play 'not to lose'!
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