Six reasons why the ability to take a loss is a virtue

Whether we like it or not, quite often we end up making mistakes while buying stocks. We cannot take a loss and start hoping that we will get lucky and one day when the market will help us break even and we will recover our money. The ability to quickly close out your loss making positions when you realize that you have made a mistake is the only way you can hope to be successful in the stock market over the long term.

Why is the ability to accept and take losses quickly when a mistake is made so important?

1. The mistake could become worse while you keep hoping that things will become better
2. You will protect yourself from the urge to average your costs
3. Accepting your mistake gives you the learning's which will help avoid future mistakes
4. You would have done better research then ext time you go out to buy 
5. You can stop spending time hoping for a miracle, instead you can focus your energies on the next opportunity
6. Though not a good reason, you could still net the losses against your gains and optimize taxes

The ability to accept mistakes and cut losses is the only way to increase your chances for success over the long term.