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4 Reasons Why Refusing To See A Doctor Is Like Holding Onto A Losing Position

Sometimes your stubbornness can get in your way of making money.

 

Know someone that always refuses to see the doctor when they’re unwell? Is this person similar to someone that refuses to let go of their losing position?

Here are 4 reasons why refusing to see a doctor is like holding onto a losing position.

#1 Overconfidence 

You are overconfident of your immune system to clear the virus. You insist you don’t need a trip to the doctor’s to get prescribed medicine. Sometimes you think the medicines you get from the pharmacy are enough to fight the illness.

People holding on to losing positions are often overconfident when choosing the stock. In some cases, this might be true. Their analysis and research on the company might have been thorough, and the stock does eventually show the results. However, this overconfidence is often a negative investing trait.

Overconfidence is common among investors. They perceive their skills and analysis to be superior to that of others. Many people overestimate their capabilities, and accuracy of their predictions

No one is superior to the market. We are at the mercy of it.

#2 Denial

You shake off big issues as small issues.

You insist your cold is a common cold, just sinus or simply high sensitivity to the environment. Your “common cold” might just be a virus that will pass to your family members, friends, and colleagues. It’s better to be sure.

You refuse to accept your losses, claiming that your losses are minimal and you expected this to happen. You insist that your stock has not declined that much when you have in fact already lost a significant portion of your capital. This self-denial and inability to see things as it is could worsen your losing position.

#3 Optimism

You always believe things will improve.

You think your cold is improving, that it will disappear soon. A doctor is unnecessary.

You are optimistic that your dropping stock value will rise soon. Surely you can get back your losses. You are positive that the decision you made in the past was a wise one. “The market situation will improve,” you declare. This positive thinking can often distort perception and objective thinking. As much as you would like your stocks to rise, sometimes things just don’t play out the way you want it to be.

Read Also: Why Losing Money In Investing Can Cause You To Lose Even More Money

#4 Procrastination

If you can self-medicate, you can save the money on consultation fees and prescribed medicines. However, sometimes this fee spent at the doctor’s helps to get rid of the virus, and improve your health in a shorter amount of time.

You don’t want to let go of the stock that you’ve spent so much resources and capital in investing. You’ve already lost a significant amount of money. But you refuse to let go, hoping that the stock price will increase to recoup your losses. If your investment has made losses which are unlikely to be recovered, it is wiser to cut losses and let it go.

Ultimately, you should see a doctor to get the proper medical prescriptions. Ultimately, you should let go of your bad stock when you reach your minimum threshold. You must be able to admit when you’re wrong. Take the loss. You don’t win all the time. Don’t add on to your losing position, don’t let your illness worsen. Set a stop-loss and always remember your investing objectives.

Top Image Credit: DollarsAndSense.sg

 

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