Most traders blow up their trading account by simply holding on past a stop loss or not having a stop loss all together! When a trader enters a trade he or she must have a plan set and stick to that plan. For day traders the most popular way of planning is setting an entry, a stop loss (price they won’t hold the position past) and sell targets.
What happens to many traders especially newer day traders is when the stock hits their predetermined stop loss they do not sell their position and hold onto it because they are absolutely convinced it will bounce and go back in their favor. All the while the stock has gone from their entry of say $8 down to $6 and now they are down $2 per share. They now look at the chart and think to themselves there is support at $6 but then the support does not hold and It goes down to $5 per share and now they are down $3 per share!!! All the while they stop loss was $7.50
When we get stubborn or prideful because we do not want to take the loss this hurts our accounts and it can cause the blow up of a trading account. Sticking to plans and to our stop losses protects us from this and keeps us in the game for the long haul!