Why the Most Successful Traders Have the Most Losses

Photo by Gilly on Unsplash

Everyone knows the trading axiom: ‘cut your losses and let your profitable trades run’. Yet so many traders have a hard time sticking with it.

In fact, this issue has its own name: the disposition effect. Several studies have found that investors have the tendency to hold onto losing positions longer than winning ones. Their loss aversion leads them to take risk-seeking…

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