Some of you reading this will say that you always place your stop and are willing to lose the money. While you may say this, you really don’t want to lose the money. You’ll place your stop out there, which could be pretty far off from your entry price. Over the next couple of hours or days depending on your timeframe, you will slowly move the stop up because the price is not “acting” properly. Sure enough, at some point your new stop order is triggered right before the market takes off. If this has happened to you, it is one of the most frustrating events that can occur in the market. Your analysis was right, the market in the end gave you what you expected; however, you were not willing to accept the randomness of the market and the fact you could lose money.

Until you accept the risk, you will interpret the noise of the market as a potential threat and will find some way of rationalizing to yourself that you must exit the trade now.