Are you holding onto losing positions, hoping they'll bounce back? It's time to rethink your strategy.
In investing, knowing when to sell is as important as knowing what to buy.
After dozens of mastermind events with multimillionaires, here are the strategies the top 1% of investors use to make smart selling decisions and protect their wealth.
Selling a losing position can be emotionally challenging.
You might think, "I'll wait until it breaks even," or "It has to go up eventually."
But here's the hard truth: hope is not a strategy.
Top investors understand that holding onto a losing position means missing out on better opportunities.
They view selling at a loss as a chance to reallocate capital to potentially more profitable investments.
My experience with crypto investments taught me that sometimes, the best strategy is to cut losses and double down on the best-performing assets.
I have sold multiple altcoins (including Fantom, for example) to rotate that capital back into Bitcoin. Typically, it is also best to sell the losing picks by the end of the year for tax deductions.
Ask yourself: Are you holding onto any investments simply because you're afraid to sell at a loss?
Successful investors remove emotion from the equation by:
You don't need to time the market perfectly because you never will.
You should stick to your plan because that's where your most rational mind was before.
Counterintuitively, a bear market can be the perfect time to reassess your portfolio.
Use downturns to trim underperforming positions and strengthen your overall portfolio.
This strategy allows you to emerge stronger when the market recovers.
When was the last time you reviewed your portfolio objectively?
While individual metrics may vary, the top 1% of investors often use:
These tools help create a more objective picture of an investment's potential.
Many naive investors fall into the trap of thinking they can time the market. Not even the Top 1% can, so you shouldn't worry about it.
They hold onto losing positions, convinced they can predict the perfect moment to sell.
This approach often leads to larger losses and missed opportunities.
Instead of trying to time the market, use this checklist when reassessing your portfolio:
Do you have a written plan for each of your investments?
I'm almost sure you don't, so do that. This is today's homework for you.
Also, remember to truly diversify your portfolio. If it's composed of 10 assets but all correlated, you're not diversifying.
Join our free community, Crypto For Value Investors, if you want to know how to start in this sector.
Selling at a loss isn't a failure, it's a strategic move to protect and grow your wealth.
By adopting the mindset and strategies of top investors, you can turn setbacks into stepping stones for future success.
Stay disciplined, remain objective, and keep your long-term financial goals in sight.
That's how you invest, like the 1%.
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