After incurring trading losses, the biggest taboo is to get carried away and average down against the trend, or to rush to get the money back. In my early years, I wouldn’t accept my losses—I kept adding positions again and again, and in the end I lost more and more until I was completely trapped. Only later did it become clear to me: the market never runs out of opportunities. After a loss, stopping in time and reviewing to summarize is far more important than blindly trading. Pausing for one or two days after a loss, figuring out the reasons for the loss, and steadying your mindset before re-entering is much more reliable than trying to force a standoff.

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