It’s easy to hold on to losers.
It’s difficult to hold on to winners.
People cut their winners fast and let losers lay idle in their portfolio.
A person might be comfortable holding a 50% drawdown but would get anxious holding a 10x bagger.
The anxiety for first timer holding a 10x is much higher. They’ve not seen this kind of gains in their life and want to cash in (what if it falls back and I look like an idiot).
Hence, holding onto winners takes more guts, patience, tolerance and better emotional control than holding onto losers.
It’s only those who can ride the tide, digest the volatility induced anxiety, who will make BIG money!
Hence, only a few end up making 50-100x while the rest book out their way.
It’s easy to take profit.
It’s difficult to see the profits and let go of booking profits. You need some kind of detachment to make big profits!
Patience and tolerance. Both ways. Up and down. Will help you a long way in your wealth creation journey.
