I do also understand that emotion can lead us into losses when we jump into it with out getting the proper timing but on some times it pays through too when the emotion helps a trader to exit a pending losing market.
Yes cutting lose to a more bigger losses is smart too. A trader is based his movement through the patterns and chart, but we cant conclude that all are just relying on that especially when they saw the opposite direction of their strategy and ended up losing. There should always be a back up or should I say stop loss and not easily trust the analysis he just made hence it only served as a guide and not a total 100% result and emotions are the middle ground there.