Thanks for this clear piece about how we think irrationally about loss. I was once given the advice when I started a new job to list three conditions under which I would leave that job. It may be a bit imprecise (and kind of a downer when you’re excited about a new job) but it’s a great way to keep a clear head when things get rough. People stay in jobs that are not healthy for them for a long time because of the same forces you write about here.
For a stock purchase it's a lot easier to place a stop loss than in other life's decisions, investing or otherwise, where the criteria for the stop loss may not be as easily qualifiable as a stock market investment.
Social media is full of quotes and graphics telling us not to give up, ignore naysayers, and persevere, because success is just around the corner. Lots of little clips showing people giving up when success was so close.
The million-dollar question in those situations is "How do we assess the relevant from the irrelevant, the essential from the incidental, to establish the stop loss?". The factors are going to be different for every situation and for different people in similar situations.
In 2008, Adriana and I purchased a photo studio franchise. The concept of the franchise resonated with us. Adriana as a photographer and for me as an opportunity to have a side business. I remember the excitement of bringing lasting memories to our customers. Long story short, we had a bumpy start. In 2009, the swine flu pandemic and the Mexican government war against the Narco severely impacted the business. We were still in the USA, and after over a year of paying a mortgage and rent, we sold our house for an over 30% loss. At that point, we had to stop our losses. We gave away 50% of the business to keep it going and stopped investing in it. The business lasted a little over ten years. I am sure the COVID-19 pandemic would have caused the business to close. Did we recover the investment? No. Did it hurt? Yes, not only financially. Did we learn something? Yes, a lot, in many different ways.
Thanks for this clear piece about how we think irrationally about loss. I was once given the advice when I started a new job to list three conditions under which I would leave that job. It may be a bit imprecise (and kind of a downer when you’re excited about a new job) but it’s a great way to keep a clear head when things get rough. People stay in jobs that are not healthy for them for a long time because of the same forces you write about here.
For a stock purchase it's a lot easier to place a stop loss than in other life's decisions, investing or otherwise, where the criteria for the stop loss may not be as easily qualifiable as a stock market investment.
Social media is full of quotes and graphics telling us not to give up, ignore naysayers, and persevere, because success is just around the corner. Lots of little clips showing people giving up when success was so close.
The million-dollar question in those situations is "How do we assess the relevant from the irrelevant, the essential from the incidental, to establish the stop loss?". The factors are going to be different for every situation and for different people in similar situations.
In 2008, Adriana and I purchased a photo studio franchise. The concept of the franchise resonated with us. Adriana as a photographer and for me as an opportunity to have a side business. I remember the excitement of bringing lasting memories to our customers. Long story short, we had a bumpy start. In 2009, the swine flu pandemic and the Mexican government war against the Narco severely impacted the business. We were still in the USA, and after over a year of paying a mortgage and rent, we sold our house for an over 30% loss. At that point, we had to stop our losses. We gave away 50% of the business to keep it going and stopped investing in it. The business lasted a little over ten years. I am sure the COVID-19 pandemic would have caused the business to close. Did we recover the investment? No. Did it hurt? Yes, not only financially. Did we learn something? Yes, a lot, in many different ways.
In our spiritual life we must arrest backsliding if we want to stop loss of Spirit's vitality and strength of fellowship .