Most traders, when entering a trade, unconsciously fall into a one-sided mindset. When they hit the long button, only the scenario of rising prices, a green account, and the potential profit appears in their minds. When going short, they only think about the scenario of a sharp price drop and the potential profits ahead. Their minds are entirely occupied by the desired outcome, while the opposite scenario – if the market does not follow their expectations – is almost left empty.
This lack of preparation causes traders to fall into a passive state when prices go against them. Initially, it's just a small loss according to the allowed risk, but without an action plan, fear and hope start to intrude on decision-making. They hesitate to cut losses, comforting themselves that prices will reverse, or move the stop-loss further away to give the market more room. From a controllable mistake, the trade gradually becomes a large wound on the account.
In reality, the market does not care how accurately you analyze or what you wish for. What distinguishes professional traders from emotional traders is not the percentage of correct trend predictions, but their preparation for the wrong scenario before considering the right one. For them, a trade does not begin with the question, 'Where will the price go?' but with the question, 'If I am wrong, how much will I lose, and how will I exit the trade?'
When a trader accepts risk upfront, cutting losses is no longer a failure but an essential part of the game. A small predefined loss helps them preserve capital, maintain clarity, and stay in the market for other opportunities. Conversely, the inability to face negative scenarios turns each price movement against them into psychological pressure, pushing the trader into a vortex of fear, hesitation, and undisciplined decisions.
A two-dimensional mindset in trading does not make you pessimistic or disadvantaged; it helps you be proactive. When entering a trade with full preparation for both possibilities, you are no longer led by the market. Whether prices move in line with your initial assessment or not, you still know what you need to do, where, and when.
