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1. The inability to take a loss can lead to emotional decision-making, such as fear, denial, or impulsivity, which can further exacerbate losses and hinder overall trading performance.
2. Traders who don't know how to size their positions appropriately may expose themselves to excessive risk or miss out on profitable opportunities.
3. Having a strategy provides traders with a framework for decision-making, helps maintain discipline, and increases the likelihood of consistent profitability over time.

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