Short excerpt from a YouTube video (Kardec Trader) advising traders to accept that markets can be random and unpredictable; traders must take predefined losses and distinguish between legitimate 'market losses' and avoidable bad losses caused by poor risk management.
Because you have to understand there's going to be times where everything looks great on the trade, but the trade still tends to go the opposite way. This is the market. The market is at times random. At times, there are unknown things that come into the market that we can't predict or we can get ahead of. And when that happens, we are supposed to take our predefined losses. That is our job. Now, if we overlook something, if we didn't manage our risk properly, now that categorizes it as a bad loss, and that is something that we need to be careful with.
