Why Buying a Growing Asset When You're Losing Is a Bad Idea
Financial markets are a never-ending game of emotions, where greed meets fear, and rationality often takes a back seat. One of the biggest temptations for investors is to buy an asset that is rapidly rising, especially when their own investments are losing money. At first glance, this seems reasonable: why hold on to losing positions when you can jump on the upward train? However, such a strategy can lead to even greater losses.