Learn how to take losses quickly and cleanly. Don’t expect to be right all the time. If you have made a mistake, cut your losses as quickly as possible.
April 10, 2023
With most mistakes we make in life, we have no idea of what the immediate outcome will be. There’s just a feeling it will be negative. But in the investment world we often know quickly what the mistake is going to cost us. When that happens, it is unnerving because we now know that the emotional impact of losing money is 2.5x...