Ask Colin

Where is the fine line between cutting losses and having the patience to allow your trade time and room to work?

That line is in your trading plan. You take a trade because there is a situation that you plan says has potential.

An essential element in money management is to control risk. Risk is the difference between your entry point and where you are wrong about the trade. If the price goes to where you are wrong about the trade you close it.

This is not difficult to understand but is tough psychologically. You have to have a clear plan or everything is lost. Assuming you have a clear plan, you need the discipline to follow it. That discipline comes from testing, testing and more testing. Then paper trading. Then experience. It can take years, just as it takes years to learn to be a surgeon or an accountant or a lawyer.