# In Trading, Many Lose Money Not Because They Can't Read the Market

In trading, many people lose money, not because they can't read the market.
It's because they're too desperate to prove themselves right.

They place orders not just to make money.
On a deeper level, they want to prove:
I got the analysis right.
I'm smarter than others.
I definitely didn't get it wrong this time.

Once this mindset takes over, trading starts to become corrupted.
You were originally making decisions,
but gradually you're just defending your ego.
You were originally following the market,
but gradually you're fighting against it.

This is the cruelest part of the market:
It never debates right or wrong with you.
It only gives you results.

You think your analysis is comprehensive, your logic is sound, your perspective is sharp.
But the price doesn't care. No matter how elegant your logic is, it doesn't matter.
The market won't reward you for being serious.
It won't validate you for persisting.
It won't come back and rescue your position just because you're unwilling to accept the loss.

It just keeps moving forward,
and takes along everyone who "refuses to admit they're wrong."

Why do people always want to prove themselves right?
Because admitting you're wrong is too hard.

Admitting you're wrong isn't just acknowledging this single trade was wrong.
What many people feel deep down is:
"If this trade was wrong, does that mean my skills aren't good enough?"
"If I cut my losses, does that mean I'm not capable?"
"If I got it backwards, won't others think I'm unprofessional?"

So many people don't lack understanding of stop-losses;
they're unwilling to use them.
It's not that they don't know they should exit;
they can't bear to admit their judgment was wrong.

So they just hold on stubbornly.
When it drops, they tell themselves "wait a bit longer."
When it drops more, they tell themselves "it's just a pullback"...