Nevertheless, in investing, mistakes will be made.
And when they are, there is no cheaper insurance than accepting a loss quickly.
That is the tactic of retreat than capitulation.
Serial losers
It would be very difficult for an investor losing, say, 5% to 10% each time on a succession of ventures, to continue to lose time and time again without checking his errors or stopping altogether.
Long term hold irregardless
A buyer who holds regardless of unfavourable news or action can become involuntarily locked in his "investment" for years and often, no amount of future waiting can extract him from his predicament.
It is important to regard the situation with an open mind, unbiased by a bad stale position, and it is important to be able to act each time convictions are very strong.
Unless losses are cut, such an attitude and such action are impossible.
And when they are, there is no cheaper insurance than accepting a loss quickly.
That is the tactic of retreat than capitulation.
Serial losers
It would be very difficult for an investor losing, say, 5% to 10% each time on a succession of ventures, to continue to lose time and time again without checking his errors or stopping altogether.
Long term hold irregardless
A buyer who holds regardless of unfavourable news or action can become involuntarily locked in his "investment" for years and often, no amount of future waiting can extract him from his predicament.
It is important to regard the situation with an open mind, unbiased by a bad stale position, and it is important to be able to act each time convictions are very strong.
Unless losses are cut, such an attitude and such action are impossible.
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