Should You Avoid Trading or Investment Losses?

You know that you should cut your losses and let profits grow. But sometimes you don’t do it. Why? Because you are afraid of losses. Why? Probably because you are afraid of being a loser.
Did you feel some tension in your body when you read last sentence? If you felt then probably fear of being a loser caused many of your losses and decreased your profits.
“Being a loser” is an artificial concept created by your ego. It doesn’t exist in real world like you, me or Bill Clinton. You disagree? So tell me how to touch, taste or at least smell “being a loser”?
You are afraid of something which is not real but makes you lose real money.

1. You don’t cut your losses

You don’t want to cut your losses because only losers take losses. So you wait, hope that a loss will become a profit and lose even more money.

2. You don’t let your profits grow

You don’t want your little profit to become a loss. Why? Because you don’t want to feel like a loser. So you close your transaction and curse when more patient investors and traders make money on this move instead of you.

3. You give up trading or investing

Everyone sometimes lose. You also sometimes lose and feel like a loser. It is not a pleasant feeling. You become less motivated. You less trade or invest. Maybe you give up and find some more pleasant way of making money.

How to deal with it? Observe your fear and accept it. Be aware that you are afraid of something which is not real. After some time when you will read about “being a loser” without any tension. You will be able to focus on real issues and make money.