Too many people hang onto if I invest $100 in bitcoin today 2023 that they bought a long time ago hoping that they will come back to the level that they were. Nobody likes to admit that a mistake has been made. Three of the most difficult words to say (besides "I Love You") are: "I was wrong".

Usually when I buy a particular stock in a company, there is a specific reason I am willing to pay money for it. if I invest $100 in bitcoin today 2023 It might be that I think a product will be more popular than anticipated, the company is worth more than the share price indicates, or there is big potential for growth in a market. As long as the reason that I bought the stock is still intact, I am willing to take small losses and maybe even buy more. As soon as you are sure that you are wrong, it is time to sell!

I don't care what price a stock has sold for in the past, we only care where it is going to go in the future. To be honest, there are stocks out there that will NEVER get back to their high prices. Just because Krispy Kreme Donuts (KKD) once sold for $49.37 per share, doesn't mean it will ever trade back in that range. In fact, in September of 2009 its share price was $3.37. If you recognized that they were expanding too fast, you could have sold before it tanked. I am pretty sure that KKD will never be that high again.

If you want to avoid losing huge amounts of capital, you will have to set some sell rules for yourself. I set my sell rules at 10%. If my stock goes down more than 10%, I assume that I have made a mistake and cut loses short. You cannot afford to destroy wealth on one stock. If you are wrong, you can gain back 10%, you will have a hard time gaining back 90% losses.

You also need to realize that in order to gain back a 10% loss, you have to have a 11% gain. Not too bad, right? If you let it lose 90%, you would have to gain 1000% to get that loss back.

Let's do some math. If you invested $1000 in a bad investment and you sold after losing 10%, you would still have $900 to work with. You only have to gain $100 dollars. But if you let it lose 90%, you would have to gain $900 back with only $100 left to invest. That is a hole you do not want to have to dig out of.

If you want to have the best investment portfolio, you must be able to swallow your pride and admit you have made a mistake. Sell before you lose too much value.