Accepting a loss is tough

A prospective client once asked me if I had lost money while investing or trading?. The answer is an obvious “yes”.

I have learnt that the greatest of investors and traders spend proportionately more time understanding the risk to their money versus amount they will make.

If their view about an investment changes, they easily cut their loss or reduce their exposure. They don’t feel that an asset “owes” them a certain price; let alone an obligation or privilege to “break-even”.

They don’t have an aversion to taking a loss.

Whether it’s a bad investment or a romantic relationship that didn’t spark, accepting the loss is an important step to take before “moving on”.