Let's see if I have this right: You'd rather avoid the feeling of looking stupid by deliberately locking in a guaranteed small loss today, for the more likely chance of feeling despondent when you lose a larger portion of your capital.

That leads to inaction on your part, and you sit in disgust watching the market take away more of your equity, like a bully. Then you talk about how the market is fixed or rigged, when all the while you had the power to get out of a losing position, but you chose not to. You chose not to do the right thing because you were afraid to feel certain feelings. For the record, you do have the right to not participate, but that's for when you're unsure of what position to initiate, not when it comes to protecting your equity. When you smell smoke, assume that it's a five-alarm fire.

—Michael Martin