Up to a point, you really have to define your max downside. Find the best trade-off btw true negative (Loss) & false one (Opportunity Cost). Then since you know it's the best trade-off. You'll take your loss. Cause it's what's best to do. The worst gamblers are the ones gambling with losses. The best ones, with profits. Humans also tend to fear more than what's existential -> Anxiety. Plus if you take your best loss. You won't feel like overwhelmed. And you still have the option to try again. It's stupid to spend an entire session trying to "manage", close, a loss for a profit. Cut it before it becomes too big to fail / dare / cope with. I prefer to generate a lot of little losses (False negatives or not) and to go ahead. Rather than gambling with them, taking care of them, for finally losing my time, money, positiveness or motivation. Well ... I know that lot of small losses can add up quickly. But usually I am more profitable by cutting losses quick & short than by managing them. We're paid for managing our trades. Which is by offsetting losers and plus if affinity with winners. Next time think about it this way. I'll need an astonishing winner (Low Probability) just to offset an astonishing loser (High Probability), therefore I'll keep it small ! Rather than ... I don't want an astonishing winner to offset that astonishing loser, therefore I'll turn that astonishing loser into a small loser. Because it's already too late my friend ! Don't try to control what's in fortune's hands. You can avoid a big loser (Your hands). But you can't turn a big loser into a small one (Fortune's hands). I believe that 80% of our trade just cancel each other. The 20% left have to be positive ones. Not left tailed. But just right ! One way to Min(Loss) is by entering the market with half your initial size. Then scale up if it's green and put a SL à la Handle (+1tick) !!! Know your initial (Worst) CDF and how to shift it to the right, dynamically, while opportunities arise (Monty Hall).
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