Every trader wants to win, but the best traders in the world don’t win all the time, they just lose well.
The difference between amateurs and professionals isn’t the size of their winners, it's the size of their losers.
Knowing when to exit a bad trade before it turns into a catastrophic one is what keeps you in the game.
Why Retail Traders Fear Losing
Most retail traders fear losing because they take every red position personally, I get it. I have been there!
A small loss feels like failure, but it’s not. It’s feedback.
Instead of accepting that loss as part of the process, many traders hang on, hoping the market will “come back.”
They don’t want to admit they’re wrong, so they let emotion override their plan.
That’s how small losses become account killers.
Example: CHFJPY Trade
Here’s a real example from my own book.
I was short CHFJPY, even though the pair had been trending higher for weeks.

The setup was clear, but I knew I was trading against the trend, so I had to be sharp with my management.
When the 1-hour structure broke and the market flipped bullish again, I didn’t hesitate.
I closed for a loss of just 8 pips.
If I’d held on, hoping for a reversal, that loss could have ballooned to 90 pips.
By accepting the small hit early, I saved capital and protected my mental equity, both far more valuable than being “right.”
Why You Shouldn’t Fear Closing Trades Early
Closing a trade early isn’t weakness, it’s discipline.
If the market conditions change, your edge disappears. Once your edge is gone, every extra pip you risk is just ego.
The best traders know that capital preservation equals opportunity preservation.
The goal isn’t to win every trade; it’s to survive long enough to catch the big ones that matter.
So next time you’re in a losing position, ask yourself “Is my reason for entering still valid?”. If the answer is no, lose well.
Take the small hit. Protect your capital.
