Been staring at a losing trade for weeks now. It's like a bad relationship - you know it's not going anywhere good, but you just can't bring yourself to end it. Down a significant amount, and every day it's a battle between hope and logic.

Anyone else have this problem? It feels like I'm always waiting for that miracle turnaround, even when all signs point to the opposite. What's your strategy for finally admitting defeat and cutting your losses?

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Tax loss harvesting to offset my wins. At least turn it into some benefit. It also depends on my strategy. I’ve had 3 trades this year that resulted in paper losses in excess of 20k. 2 out of 3 went positive

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Just pull the plug, don’t get too attached or emotional to your initial decision…out of sight out of mind and focus on the next trade.

Sunk cost fallacy. Just because you’ve followed something for a long time doesn’t mean it’ll be good in the long run. Best you can do is look at it objectively, take away that history you have with it, and ask yourself what you would do being on the outside looking in.

First, harvest the tax loss. Second, reflect on your initial reasoning behind the trade. What changed such that present day reality doesn't align with what you thought? Maybe turn this into knowledge gained.

Trading on the markets - is "easy money".
In this case, if you do not get "easy money" when you open a position, you made a mistake and should get rid of the position as soon as possible.

Cut the position and move to the next setup

There is an old rule. Lean in close to your monitor / screen and say "I love you ticker XYZ." If it says "I love you too." Sell everything, your nuts. If it doesn't respond, just sell the ticker that doesn't love you.

I give myself a percent I’m willing to lose. That way I hold myself to it. You can always get back in at a better time.

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