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Market Intelligence › Basic Terminologies
Holding a position only because you have already invested a lot of money and time in it.
Published by The Retail Trader · JUL 31, 2026 · Trading Psychology
Sunk Cost Fallacy — Holding a position only because you have already invested a lot of money and time in it.
This term comes under Trading Psychology, in the section “BIASES OF THE BRAIN”. These are those mental shortcuts which are useful in normal life, but are costly in the market:
Other terms in this group — understanding them together is more useful:
• Confirmation Bias
• Recency Bias
• Anchoring
• Loss Aversion
• Overconfidence
• Hindsight Bias
• Survivorship Bias
• Gambler's Fallacy
• Lottery Bias
To read the entire group and all its examples in one place, see the journal "TRADING PSYCHOLOGY: Words from the Mind" - this term has been taken from there.
This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.