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”.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: