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. There is also a striking inability to stay with winners.
Most traders are too willing to take small profits and, therefore, miss out on big profits.
This takes patience. It sounds simple, but it takes discipline to trade correctly. This is hard whether you re losing or winning. Any one who trades with a tight stop will be stopped out in a normal market retracement. You'll find you will be stopped out most of the time.