WHY NOT TRDER CLOSE FUTURE TRADE IN LOSS *
1. Hope for Reversal
Traders often hope the market will bounce back in their favor.
This emotional decision delays closing the trade.
2. Avoiding Realized Loss
Closing a trade locks in a loss.
Some traders prefer to “keep the loss unrealized” by holding on.
3. Lack of Stop-Loss Discipline
Many traders enter trades without a stop-loss.
Without a plan, they keep waiting, hoping for profit.
4. Emotional Attachment
The trader might be emotionally invested in the trade or the asset.
Pride or fear of admitting a mistake plays a role.
5. Overleveraged Position
In high-leverage trades, closing a position might wipe out the account.
Some traders gamble by holding on, expecting a miracle.
6. Misunderstanding of Market Trends
The trader might misread the market and wrongly believe the trend will reverse soon.
7. Greed or Ego
Traders don’t want to be “wrong.”
They believe their strategy will eventually be right.
8. Margin Calls and Liquidation Risk
Sometimes they wait until the exchange liquidates their position rather than closing it manually.
