The reason that pain hurts is because it should.
Pain is nature’s way of telling us to get out of harm’s way. Like fever tells us that something’s not right inside of us and that we must take the necessary medication to avoid doing a greater harm to our body.
This is also true when it comes to investing in stock markets. When the market moves and I’m losing money, I know it hurts.
But more often than not, unlike in life, I would continue to bear that pain (keep holding my losing stocks) instead of taking the medication (cutting the losses) to avoid a greater harm in the future.
No one is right all the time and I don’t have to be.
But this wasn’t something I believed a few years back, till the time I took my first major loss in a leading textile stock.
[Read more…] about My First Stock Market Loss…and the Lesson I Learnt