I must confess that I the owned the following stocks before they were big winners: GOOGL, AMZN, AAPL. 200 shares of each. If I had kept them through today, I would have $900K , $1.3M and $1.5M respectively today. The gains would have been 12594% , 2398%, and 14346% respectively. Yeah, but I didn't hold. They all dipped significantly after I bought. When they recovered many months later, I sold them for a small profit of about 15%. Would've, could've, should've.
20-30 years later, in retrospect, I believe I know why. Simply, my investment mentality was to maximize growth which led to me being overly concerned about stock declining and a 1929 like crash always being greater than my investment conviction. In addition, I judged success by an increase in account value. Therefore, I would lock in gains by selling previously declining stocks once the price crossed the breakeven point by a small margin. Of course, in some cases declining stocks never recovered, which would have enabled to me to sell. Such stocks are still in my accounts.
I read this comment on Wall Street Bets over the weekend:
"I hold my losers.
I cut my winners.
We are not the same."
LOL, describes me exactly.
This is not financial nor investment advice. Please consult a professional advisor.
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