A speculator turns into a value investor

Those who know about the stock market can surely relate to a situation when a position in a stock was initiated with the sole intention of speculation. The speculative trade turned wrong and started showing losses. Since losses are hard to book, the position is left open. The larger the losses are and the longer they continue  a funny transformation takes place.

The one time speculator turns into a value investor on that losing trade. In a bid to rationalize the losses the speculator all of sudden starts finding deep value in the stock which the market is completely missing out on. The speculator turned deep value investor will then look towards cost averaging as an escape option or impatiently wait for the first opportunity at a cost break even and a significant opportunity loss.

Inability to book losses can convert speculators to deep value investors

Theoretically the best way forward in a losing trade is to accept the mistake, learn from it, cut losses and move on, but then reality is not the same as theory.

Please feel free to share via comments, some loss coping mechanisms.