What exactly does sitting out losses mean? ▪️Sitting out losses is when a trader does not close a position for which there is a loss and holds it hoping that someday it will become profitable. There is nothing particularly in this, but this manner of trading is fraught with many dangers. ▪️The most important thing is the attachment of the wrong type of trading when opening a deal. The trader does not know what loss he can incur. And a wrong order is a contagious thing. ▪️Let's say that a trader has already faced such a situation once and could sit out a loss and closed a deal in the black. In general, deep in the subconscious, he remembers this moment, and every time he encounters a similar situation, he does the same. What is the danger? ▪️The trader opened a position but made a mistake with the direction and bears a loss. He does not close the position and waits. He remembers that once simply sitting out losses already helped him. The trader is waiting while the minus increases every day. The losses are growing and growing. The trader dreams and dreams that a price reversal in the right direction is just around the corner. ▪️However, there is still no reversal. Thanks to this approach of loss accumulation, more than half of the deposit may already be in the risk zone, if not more. The trader will no longer close the position since he has already lost most of the deposit. So in 98% of cases, such 'lucky ones' continue to wait further. The result is clear. The trader waited until there was no money left on his account at all. That's what overstaying has led to. Losses are the costs of the profession Overstaying can save once or twice, and even ten times, but the wrong trade is fixed, and it will remain. And you'll understand when it will be too late for you and your money. 📍Therefore, always think when you do something, especially in Forex. 📍Remember the golden rule: when a trader opens an order, he knows what loss he can incur and what profit he can expect. Being constantly in profit is next to impossible.
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