Why is it that the positions we’re most reluctant to cut losses on often end up losing the most? When I first entered the market, I always felt that selling meant admitting defeat. Down 10%, I’d wait for a rebound. Down 30%, I’d start researching fundamentals. Down 50%, I’d simply tell myself, ‘Hold for the long term.’ Later, I realized that a lot of so-called ‘beliefs’ are just an unwillingness to admit you were wrong. Human nature tends to anchor to the buy-in price: anything above it is considered a gain, anything below it is seen as undervalued. But the market doesn’t care where you bought in, and it certainly won’t push the price back up just because you’re desperate to break even. The deepest pit I’ve fallen into wasn’t misjudging a project—it was trying to prove I wasn’t wrong. I kept averaging down, my position got heavier, my options fewer, and when a real opportunity finally came along, all my funds were trapped in that ‘just wait a little longer and it’ll recover’ story. Cutting losses doesn’t mean slashing every time the price drops. Before buying, write down your logic: why you’re buying and what conditions would invalidate your judgment. Price fluctuations can be tolerated, but broken logic means it’s time to go. The most expensive cost in trading isn’t a small loss—it’s spending your time, capital, and emotional energy maintaining a decision that’s already wrong. Remember: admitting a mistake costs you one trade. Refusing to admit it could cost you an entire cycle.