The Psychology of Being Wrong

Being wrong about a trade is normal. Refusing to accept it is the problem.

When a trade moves against you, it can feel personal.

You may begin searching for new reasons to stay in the position or move your stop farther away.

But the market doesn't know your entry price, and it doesn't owe you a recovery.

Before entering, define what would invalidate your trade idea.

If that condition occurs, follow the risk plan rather than negotiating with the market.

You can analyze the trade later to determine whether the setup was valid and whether the loss was expected.

The immediate job is to manage risk. Protecting your ego should never take priority over protecting your account.