1. When an individual gets into the habit of hoping against hope, than it is the time which conveys that the individual has made a mistake and one must admit the same. When we are in loss we start asking the question to the fellow traders where the likely direction of market exists and how the particular share will perform. Since all these people are in same boat they indulge in the phenomenon called as " You pat my back and I pat yours" where each loss making trader eulogises the other trader.

2. As a net result the individual gets into complacency mode and thinks that he/she is right and the trend is wrong and in turn starts fighting the trend. However it requires a considerable amount of self discipline to acknowledge that an individual is wrong.