Every trader knows that opening a position requires a stop loss. Some people have the foolish habit of not cutting losses and just holding onto their positions. No matter what type of position they open, when they misjudge the direction, they refuse to cut their losses, hoping to hold on until they can profit before exiting, but ultimately, they end up with a liquidation.
In fact, the issue of not cutting losses is not just about making or losing money. Many people do not realize that it is actually their self-esteem that is at play. They do not want to admit their judgment error. There are problems with trend judgment, entry timing on smaller timeframes, and position management. At this point, one should face their mistakes and not let self-esteem blind them.