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The want is so great, that sometimes we forget there is a risk involved.
In fact, many investors have the mentality that things will always turn around for the better and they will hold out to the bitter end.
They are living in denial that things can also get worse.
It reminds me of a friend who was an avid horse player.
I would accompany him to the track occasionally for a day of fun and relaxation.
He was pretty good at picking the ponies.
In fact, he was so good, he thought he could never lose.
He had the attitude that, by the end of the day, he could always go home a winner.
If the chips were down he felt that, over time, he could always bounce back.
He was in denial to the fact that there was always that risk of loss.
Many investors will tell you that there is no comparison between gambling and investing in stocks.
Whether there is, or not, is not the discussion at this time.
But, there is one similarity, they both carry the possibility of a risk of loss.
The point is, the smart investor as well as the smart gambler has to know when to hold and when to fold.
The problem begins when things start going bad and mentally you lose all discipline to take the money and run.
You are in denial if you fail to acknowledge the downturn of events and continue to hope things will turn around for the better.
We recently witnessed this denial in action when the first financial institution fell.
Then as others started crumbling, like a house of dominos, everyone involved got trapped in the collapse.
They said it can't happen in modern times like it did in 1929.
In fact, some who have a terminal case of denial are still saying it can't happen.
When the signs of trouble emerge, like when the first financial institution fell, it's time to bail out.
If you stay the course and fail to acknowledge that things are going sour, you will wind up broke and have no one to blame but yourself.
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