$BTC

Fear of missing out after cutting losses, or receiving a price higher than the cut loss, can lead to endless anxiety, which may result in over-investing and ultimately blowing up your account.

The correct action is to cut losses and wait for stabilization or for a better price pattern or indicator to appear before re-entering. This is the right approach; cutting losses and re-entering is not about chasing a lower price, but rather seeking higher certainty.

Assuming you are going long, in a downtrend, if you want to catch a bottom on the right side and bet on a reversal, it will be difficult to catch it in one go most of the time. However, if you set a stop loss each time, and the first and second attempts are incorrect, then the probability of success on the third attempt increases. Understanding this will make it easier for you to let go of cutting losses.