Psychology
The idea
A loss can create pressure to recover quickly. That pressure may lead to larger size, weaker setups or repeated entries. Precommitted limits and pauses help interrupt the sequence. The objective is to keep decisions consistent with the plan, not to remove all emotion or guarantee a calm outcome.
A worked example
After a planned loss, doubling size to “get back to even” changes the risk profile without improving the setup's evidence.
Try it yourself
Write a pause rule triggered by a process mistake, then rehearse it during a demo session.
A mistake to avoid
Judging a revenge trade as acceptable because it happened to win.