Nobel Prize winner Kahneman said: The fear of loss is far greater than the desire for gain.
Many people seem to be pursuing a sense of security, but in fact, they are being led by fear.
For the sake of security, they choose a stable job they don’t like;
for the sake of security, they grit their teeth and buy a house that brings immense pressure;
for the sake of security, they maintain a relationship that has long since lost its vitality;
for the sake of security, they dare not change cities or switch paths.
The result is that in the name of security, they have created even greater insecurity.
A stable job turns into lukewarm water;
a house turns into debt;
a relationship turns into consumption;
life plans turn into an inescapable cage.
In investing, cutting losses is usually difficult, but I have been decisive because I will ask myself one question when I need to stop losses: If I hadn’t bought it in the first place, would I invest this money in the current position?
If the answer is no, then I will cut it—because I would choose this money over holding onto this wrong asset when I hadn’t bought it.
The earlier the mistake is corrected, the less the cost.
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