The mistake is not holding the losing stock - the mistake is holding it longer than you would have held an

identical stock at the identical price, purchased yesterday, and the gap between those two holding periods is

what you are paying to avoid admitting the loss has already occurred. Part of The Bias Files, Simon

Blackwood's insightful book explores why otherwise careful people refuse to walk away from decisions that

have, in every practical sense, already failed, and why naming the loss often costs less than the strategies used

to avoid naming it.

When a position moves against you - a stock, a house listing, a legacy product, a negotiation opening - it

stops being a neutral question of current value and becomes a test of whether you are willing to accept that your

reference point was wrong. Cutting Losses is not a trading manual, a real-estate pricing guide, or a negotiation

tactics playbook. Instead, it unpacks the specific psychological mechanism that makes losses hurt more than

equivalent gains feel good, and shows readers how to identify the reference point driving a decision before it

costs more than the original loss itself.

Through documented cases and explicitly labeled composite illustrations, readers will explore the hidden

mechanics of loss-aversion decisions:

- The Wound No One Else Sees:** Why losing positions command hourly attention while winning ones

fade into the background, and how asymmetric vigilance reveals which losses a person has not yet

admitted to themselves.

- The Price Anchored to What Was Paid:** Why homeowners set asking prices based on purchase cost

rather than current comparables, and how a number from a years-old closing statement becomes the

immovable floor a sale cannot cross.