Pain in the human body is a signal from the brain that something is wrong, and that action must be taken to ensure survival. Pain inflicted by a hot stove tells a person to withdraw their hand immediately, or the survival of the hand (limb) or body may be in jeopardy. The reaction is swift and precludes severe damage to the body that could affect the survival of a person or irreparable destruction to the affected body part.
The same is true of the emotional pain of a bad trade. If a trader begins to feel the pain of a developing loss, it is a signal that something is wrong with that trade. It is a signal to exit -- the more quickly, the better! It precludes damage to the financial welfare of a trading account and ensures its survival also. Otherwise, irreparable damage to one's finances will be the result.
