The 5 cent delimna
The last time while I were on my way to forex seminar, I stopped to buy a souvlaki from the shop at the corner, near my appartment. When I put my hand in my pocket to get out money, a 5 euro cents fell from my pocket. While I do not like to throw money, I stopped for one minute to decide whether to pick it up or not. Here is the delimna. Should I bend down to pick up the five cents, and risk losing the only button holding my pants, and spend all the seminar holding my pants with my hands, or forget the 5 euro cents and let it go?
This what happens with forex. You enter a position, lose some money. What do you do? Let them go, close the position, and continue with your trading tomnorrow? or keep holding the position and increase your position size and risk losing everything, just because you do not want to lose a small amount?
I have learned a lesson that everyone must know: Losses are part of the game, accept them.