Every trader knows this scenario: you found a great setup and entered a trade, then price goes against you and you buy more because you believe that price will still go up. And as price goes down further, you keep buying until you are left with a huge loss and have to close your position because it hurts too much. Been there, done that. But why does it feel so good to add to a loser and why can’t we as traders just not stop doing it? Cognitive dissonance 101 – Your brain is not made for trading The mechanism that is driving such destructive behavior is called “Cognitive Dissonance” and it is an internal protection ... (full story)