My Best Investments Are Losers

It's easy to discuss successful investments but far more difficult to assess unsuccessful, money-losing investments. The human mind cannot rationally deal with losing money, so when investors make a bad bet, the immediate response is to sell and resolve never to invest in that particular business ever again. We convince ourselves that by avoiding that company forever, we have learned from our losing investments.

If only it was that simple. As in life, learning from your mistakes often proves vastly more valuable than taking comfort or boasting of your accomplishments. It takes discipline and commitment to look back on your thought-making process honestly to find out where the lapse in judgment occurred. Sometimes, you discover your oversight immediately, in which case you have saved yourself from future financial pain and emotional headache. Other times, you will discover that your research and analysis continued several errors of judgment, in which case you will spend time and effort assessing and learning from each one. Either way, the time spent understanding the nature of your mistakes will prove invaluable in future investments....656 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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