1. The more often you are right the more susceptible you become to being inflexible. When you have had six or seven profit trades in a row, that is the time you are likely to double up and become inflexible. That's what your adversary, the market, has been waiting for you to do. It will get back your previous profits...plus some blood.
Always remember, you are dealing in probabilities, not absolutes!
2. One of the reasons that most traders lose is that it's usually the easiest route to take because it is the undisciplined route. It is not easy to get out and quite for a while when your equity has just suffered a big drop. The tendency at times like that is to hang in there and fight until you come back, and then take a rest. You don't want to admit that everything you have done lately was wrong. You tell yourself, the fight is not over - this is just a temporary setback. You have come back fast before, you can do it again.
To quite now would mean defeat and starting over again from a lower equity level!
3. The adversary loves to play the game with a trader who is in the undisciplined frame of mind. You are now at a disadvantage. It's harder for you to be objective because you are under stress to come back fast.
You take chances you would not usually take. You are not ready to admit you have lost. You are now very likely to disregard some of the basic trading rules. Whether you realizes it or not you are not in the frame of mind to really believe you will win. You are now hoping that you can win.
In this situation it's hard to quite, take a vacation and admit defeat. But then, that is one of the reasons that few traders win...it's the hardest route to take!
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