'Market and Human' Psychology perspectives with tips on how to avoid common mistakes by 
I’m currently reading (re-reading) the Way of The Turtle. It’s written by one of the original group that was mentored by some of the worlds most successful traders. I highly recommend this book.
I keep finding great little gems of wisdom that all add up to a great way of approaching trading. Here’s the piece I want to share today.
Don’t Throw Good Money After Bad: I remember my mother saying this. And the older I get the smarter she has become. In the book this is referred to as "Sunk Cost effect". In business "Sunk costs" have been spent and cannot be recovered. Have you ever worked for a firm where there was an almost foolish tendency to stay with an old system and try to keep repairing it even when it was so inefficient because there had been a recent investment in the system or process?
How about that old car. When someone spends thousands on the transmission only to have the motor blow up, that it will now cost several more thousands to replace or repair. When does it stop? where to you get out?
The same goes for trading. So to be a good trader, one needs to not view a draw-down as a real value. It just simply isn’t. Even if the market turns in your favour, you still have to make up the total loss before you start making profit.
So learn to set firm stop losses and get out where you know you should the first time. Don’t throw good money after bad.