Loading
Market Intelligence › Blogs And Updates
Why money that is already gone should not enter today's decision
Published by The Retail Trader · JUL 24, 2026 · Trading Psychology
A position already has a big loss, and it is held for that very reason. The argument is that so much has gone already. This is exactly where one mistake turns into two.
A cost or loss that has already happened cannot come back, whatever you do from here. So it should play no role in today's decision.
The right question is this — if I did not have this position today, would I buy it at today's price. If the answer is no, then holding is a new decision, not a continuation of the old one.
Not only in stocks:
• A course or subscription that has been paid for, so trading according to it.
• A strategy on which months were spent, so ignoring its results.
• A stock on which a lot of research was done, so holding it even after the thesis breaks.
• An averaged position, which now feels like a "waste" to exit.
Begin the review of every position with this one line — at today's price, with today's information, would I take it. The entry price and the earlier loss do not come into this question at all.
This article is for educational purposes only — it is not a buy or sell recommendation, it makes no claim of guaranteed returns, and it 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.