In investment and life, there are two crucial principles to master:

First, do not let sunk costs influence your decisions. Costs that have already been incurred and are non-recoverable should not affect your judgment on significant future decisions.

Second, do not let existing losses sway your current choices. Losses that have already occurred should not impact your formulation of current and future decisions.

One principle helps you control losses, while the other helps you adjust your mindset after losses. Following these two principles can help avoid much unnecessary pain, entanglement, and hesitation, allowing you to navigate your investment journey more steadily.