One thing that I have forever held as belief is in sticking with something I like even if it is a dog, with the faith that someday it may come back up. Whether these are stocks, projects, companies or people I put my faith in, I feel the urge to keep the faith and follow them all the way to the ground. But as I have aged, I feel this is an exercise that wastes too much time, energy and opportunity. This is not due to ignorance or the inability to make a decision, it is just a mix of faith or some subconscious loyalty to the initial faith. I think it may even be a fighters’ urge to prove a point and go against conventional wisdom.

Instead, there is a certain power to cutting your losses, admitting you were either wrong or circumstances changed due to things you could not directly control. It leaves you feeling powerful, positive and energetic. Sticking with a loser means needing to put up with a sea of bad news, red flags and ignoring them repeatedly. If the attachment is lower, it is time to move on. For instance, stocks, the market gives a lot of opportunity, it is much better to seek greener pastures than living with a loser, locking up capital and spending an inordinate amount of time researching on when this loser will come back up vs. areas where you could have deployed capital and watched it grow. Same holds for some of the crypto coins or projects.

However, when it comes to companies you invest in, projects, people or products that you have a lot of attachment toward, you work hard to get it out as you can’t really cut your losses, you are too invested to back off. Or are you? ;)

This maybe an obvious post but on a day when I cut my losses and felt so good about it, it just merits a reiteration.

One thing that I have forever held as belief is in sticking with something I like even if it is a dog, with the faith that someday it may come back up. Whether these are stocks, projects, companies or people I put my faith in, I feel the urge to keep the faith and follow them all the way to the ground. But as I have aged, I feel this is an exercise that wastes too much time, energy and opportunity. This is not due to ignorance or the inability to make a decision, it is just a mix of faith or some subconscious loyalty to the initial faith. I think it may even be a fighters’ urge to prove a point and go against conventional wisdom.

Instead, there is a certain power to cutting your losses, admitting you were either wrong or circumstances changed due to things you could not directly control. It leaves you feeling powerful, positive and energetic. Sticking with a loser means needing to put up with a sea of bad news, red flags and ignoring them repeatedly. If the attachment is lower, it is time to move on. For instance, stocks, the market gives a lot of opportunity, it is much better to seek greener pastures than living with a loser, locking up capital and spending an inordinate amount of time researching on when this loser will come back up vs. areas where you could have deployed capital and watched it grow. Same holds for some of the crypto coins or projects.

However, when it comes to companies you invest in, projects, people or products that you have a lot of attachment toward, you work hard to get it out as you can’t really cut your losses, you are too invested to back off. Or are you? ;)

This maybe an obvious post but on a day when I cut my losses and felt so good about it, it just merits a reiteration.