Most amateur investors will bail out of an investment program after three straight losses.

How you handle losing trades psychologically is a cornerstone to your ability to prosper in the makets. Losing properly (by losing small and continuing to make your trades) makes winning possible.

You have to learn to accept your losses, because if you're not willing to take the chance that a trade could lose a pre-defined amount (by using a stop), you will be afraid to trade or will be scared out of a good position as soon as you get a small profit.

This defeats the goal to score big when you are right. A successful trader's mindset must accept losses as a necessary and beneficial part of the trading process when handled properly.

You must have the discipline to always cut your losses or keep them small. You must resist the temptation to say to yourself