I just realized something quite interesting about investment psychology that many of you might have experienced before. When prices go down and you're at a loss, holding on to the loss is easier than selling when you're in profit. It sounds strange, but it's true.

The psychology of holding onto losses is when you keep your investment position despite the red prices. You're afraid to sell at a loss, so you hope that the price will bounce back later. On the other hand, the psychology of holding onto profits is when you sell quickly while the price is green, because you're afraid of missing out on further gains. Both of these mindsets are common, but which one makes holding onto losses more stubborn?

Perhaps it's human nature. We fear losing what we already have more than missing out on new opportunities. Once in a loss, the brain automatically clings to an illusionary hope that we created ourselves. At that moment, the brain forgets to evaluate other risks. It just wants to prove that the initial decision was correct. That’s why holding onto losses is easier than holding onto profits.

But this is where market analysis skills become crucial. If you don't know how to distinguish between an uptrend and a rebound, or lack technical skills to determine the stop-loss point, these decisions can cause significant losses. I've seen many people lose 20-30% and then give up completely.

However, holding onto losses isn't always wrong. It depends on whether you understand the project well or not. For example, if you invest in a good project but the price hasn't increased yet, you can DCA and hold the coin to wait for the next upward wave. Some altcoins or NFT-Fi projects seem to be at the bottom during a few months of downtrend, but when the market rebounds, their prices can increase 10-20 times.

Solana is a classic example. When SOL went from $5 to $240, many people sold at $100 out of fear of missing out. But if they understood the project's potential, they could have held and earned much larger profits. That’s the difference between holding losses based on knowledge and holding losses out of fear.

The key is to understand the project and the market well. If you know what you're holding, you'll be able to decide whether to hold onto the loss or sell. But if you only hold because of fear and illusionary hopes, that’s a path leading to losses.