Loss aversion is an unwillingness to accept a loss once in a trade. You tell yourself you’ll get out if you lose a certain amount money, but instead of closing the trade when you should, you decide to hold the trade and let the loss grow…in the hope that by giving the trade “more room” it will eventually turn around in your favor. The reason commonly given is that if the trade is closed the…
The post Overcoming Not Wanting to Take a Trading Loss (Loss Aversion) appeared first on Vantage Point Trading.
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