Why do you endure a losing trade, but can't wait for a winning trade?

Why is it that when you win a little, you exit quickly, but when you lose, you remain waiting and living on hope?

The answer in short:

This is something natural among most traders, especially beginners, and it is psychologically driven.

If you've had a previous experience where you lost a big profit because you delayed closing the trade, your mind gets programmed that safety is to close quickly, even if the profit is small.

Also, many people enter trades without a clear plan. You don't have a profit target or a stop loss, so your decisions become random, based on stress and psychological fatigue.

And when you win, an inner fear arises that the market will reverse on you, so you close the trade to preserve the small profit.

This is called FOMO – the fear of missing out on profit.

However, when you are losing, you have hope that the price will come back and compensate you, so you endure more.

The human mind hates loss more than it loves profit,

it means that the pain of losing $100 is stronger than your joy of winning the same amount.

That's why you cling to the loss and fear losing even a small profit.

The solution?

Set a profit target and a stop loss before entering the trade... and stick to them without hesitation.

Don't let emotions control your decisions, because the market is unforgiving.