This is also a common challenge with newer traders, and it's not the easiest thing to fix but can get fixed with time and dedication to the process. Typically speaking when you've got a trade that's taking a big loss, and the trader is taking a big loss against your better judgment, it's because you're making poor judgments with respect to risk management. There it is again, risk management! The name of the game is not profit taking. The name of the game is risk management! There's that old saying that “it's not return on capital but safe return of capital.” Please note large gains are the byproducts of correct risk management. Risk management ranges from how much size you're putting on, understanding a high probability pattern, understanding the market that you're Trading, understanding the best times to trade, where you're getting in, where you're getting out etc. Good risk management is understanding all aspects of your trade, or the edge that you're employing! When you let trades go and they collect big losses and then you cut the losses only to see them rally back ,that is a timing issue. It has everything to do with patience. There aren't enough traders that sit and wait, and wait for trade to come to them. Another big challenge is traders take big losses because they don't want to be wrong. It's extremely important to understand that you're going to be wrong as a trader. That you're going to take losses. And that being wrong and taking losses are part of the game. It's also important to remember that if you're wrong you manage your risk and you're not incredibly wrong. When it comes to managing risk, things have to be done in a very specific way. You have to understand how much size you're trading and where you're getting in and where you're getting out. There is a process that you must follow. When a trade goes against you, you have to be okay with taking losses. Your job as a trader is to be a professional loser. Great traders that have been trading for years understand how and when to take an acceptable loss. It's also very important to understand your trading strategy and know for a fact that you're upside is always going to be exponentially greater than your potential downside and as long as you have three times or more to the upside on any given trade, and you’re trading with a 50% success ratio, you’ll still have a positive yield curve. Having said that, there are still going to be times where you will run a losing streak. Point is to learn how to deal with your losing streaks correctly. There's an old saying: cut losses quickly. Learn how to do that and do it from a position of being emotionally neutral.