Many people resist stop-losses, always feeling that cutting losses is equivalent to a loss, while holding on seems to leave a glimmer of hope.
But the truth is— the pain of stopping losses is temporary, while the pain of not stopping losses is permanent.
Initially, you only have a floating loss, comforting yourself: "Just wait a bit longer, it might bounce back."
After the loss expands, you tell yourself: "If it drops another 5%, I will definitely stop-loss."
But when it really drops to -5%, you start to feel lucky: "It's already dropped this much, might as well wait a bit longer."
And the result? You are unwilling to stop-loss, and the market executes it for you— directly leading to a margin call, with no choice left.
The fairest thing about the market is that it won't force you to stop-loss, but it will make you pay for your decisions.
Harboring luck will ultimately lead to failure.