Keeping losses small in order to avoid huge losses

Keeping losses small in order to avoid huge losses Why is that so? From a psychological point of view nobody wants to lose be it stock market or in any situation of life. No One want to admit He/She has done a mistake and termed as a loser. That’s why most people prefer sticking to a losing position, till they are forced to exit as margin pressure increases. They don’t want to be labeled

Posted in: Technical Analysis