Why You Hold Losers and Sell Winners #trader

[00:00:00]You bought a stock at $80. It dropped to $55.

[00:00:04]You are now waiting for it to get back to $80 before you sell.

[00:00:09]That number, $80, has no special meaning to the market. The market doesn't know you bought there. The market is pricing based on what the company is worth right now. But your brain has anchored to your entry price as though it were a destination the stock owes you.

[00:00:25]Anchoring is the cognitive bias where an initial number becomes a reference point, your purchase price, a 52-week high, a round number like $100.

[00:00:36]All of them distort every judgment that follows. And the practical result? You hold losing positions waiting for a return that may never come.

[00:00:45]You sell winning positions too early because they hit a round number that feels like a ceiling.

[00:00:51]Your decisions are shaped by numbers that the market has already moved past.

[00:00:55]Your entry price is your problem. The market doesn't know about it.

[00:01:00]>> Anchoring, state six.