You want to have a short-term memory when it comes to trading. If…
and when a trade goes against you, a successful trader exits their position, they cut their losses and move onto the next trade. They don´t hope and pray that the stock will reverse in their direction; they just get out and conserve their capital. They stay diligent with the stops with laser-like focus.
As important it is to cut your losses before they get out of hand and move on (manage risk), it´s imperative not to mentally hold onto that loss. Don´t dwell on the losing trade, instead analyze what happened, learn from it, and move on.
