The fact here is that you are losing money whether or not you exit the position. As long as you keep your position you can't evaluate the market fairly and your small loss will most likely turn into a larger one. Lack of risk capital in the market means inadequate capital for diversification, use of proper stops, and staying power in the market. Taking too big a risk with too little profit potential is a sure road to losses. Let profits run.
Most Traders do the opposite.
They tend to get out of a rallying commodity too quickly, while holding losers too long. They often stick with a small loser until it really hurts, then take the loss. This is an undisciplined approach and goes back to money management, a trader needs to develop and stick with a system. Emotion makes many traders hold a loser too long. Many traders don t discipline themselves to take small losses and big gains.