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Market Intelligence › Basic Terminologies
The real cost of a stuck position is not just its loss
Published by The Retail Trader · AUG 05, 2026 · Risk Management
For a position that has sat in the same place for years, the damage is not just its loss. In the meantime that money has done nothing else either — and that second part is often the bigger one.
The first part is visible — how far down the position is. The second part is not — what that money would have done had it been somewhere else.
This is why the price of the thinking "forget it, it will come back someday" is not just waiting.
One simple review question is enough:
• If this money were cash today, where would I put it.
• Would I choose the same place where it is sitting now.
• How many percent does this position need to get back, and how much time.
• What would a simple alternative have given in that time.
Booking a loss feels like admitting a mistake, so it gets put off. But for tax purposes a booked loss also has a use, and that money getting back to work is its real benefit — together they make the decision less expensive than it feels.
This article is for educational purposes only — it is not a buy or sell recommendation, makes no guaranteed-return claim, and is not advisory. Rules, rates and mechanics are changed from time to time by the exchanges, SEBI and RBI, so verify every number yourself with your broker or an official source.