Cutting Your Losses and Starting Over - Jenn Drummond (2024)

Cutting Your Losses and Starting Over - Jenn Drummond (1)

On occasion, we are faced with scenarios in our lives where we frankly need to quit. Failure can sometimes be a challenge that many people do not want to meet. Trust me; I understand this all too well myself. Our society often can develop a stigma around quitting and cutting your losses. The problem with this stigma is that many of us keep going in scenarios that are not good for us because of the possibility of failure. We don’t allow ourselves to enforce our boundaries as self-care because we may be seen as a failure because of this stigma. The truth of the matter is that it’s okay to cut your losses and start over if a situation causes more harm than good. Therefore, let’s explore how you can cut your losses gracefully and start over with better success.

Why It’s Okay To Quit

Many people struggle with allowing themselves to cut their losses and quit. Most honestly hate the thought of failure, but it there would be no growth, evolution, and wisdom developed for us in our lives without failure. When we put a lot of time, energy, and effort into something, it can make it more challenging to justify cutting our losses, especially from someone like myself, who is driven. Ideally, the reason you quit should need to make sense to you to allow yourself to do it and give yourself the kindness to understand when something is no longer serving you.

A few posts back, I discussed my climb on K2 and how I had eventually just needed to cut my losses and accept that I would not reach the summit. In that situation, as much as I strived to summit K2 and was driven to complete it, the external circ*mstances surrounding that climb were beyond my control. The risk versus the reward was potentially compromising my physical safety. Therefore, I had to cut my losses, quit the climb, and eventually start all over when I could return. I learned in that situation that it is okay to stop if it could cause a great deal of physical risk and harm to my body. My physical health will always matter more than climbing the mountain, and I felt it truly justified that it was okay to cut my losses for my safety, give myself the chance to go back to the drawing board, and start over for next time.

Cutting Your Losses and Starting Over - Jenn Drummond (2)

When It’s Okay To Quit

In addition to understanding the reason why it’s okay for you to quit and cut your losses, it is also essential to know when to call it a day. Sometimes many of us struggle to pinpoint the best time to cut our losses in a situation. While, of course, if it is no longer serving you, your goals, your purpose, or your physical or mental health can be quality time to go, it when it’s draining you more than fulfilling you that it’s time to cut your losses. The same sentiment can be said if it’s also financially draining you. While money has an energetic flow, and it comes while it goes, if you are paying more dues than collecting them, then it’s time to let it go. Although I have career experience in the financial sector, I have yet to understand or master the boom in cryptocurrency. While I have invested some money into it, I set myself rules with it, and if it wavers too close to breaking those rules, I cut my losses and will start again later.

Cutting Your Losses and Starting Over - Jenn Drummond (3)

Final Thoughts On Cutting Your Losses and Starting Over

Often, we have this idea of how life is supposed to be, which gets in the way of us enjoying life the way it is. So when getting into anything, it is best to have a plan that takes the emotions out of decisions that can be emotional. Understanding why you need to cut something loose and when to cut it loose can allow you to embrace failure more as fuel than loss. Starting over again can be a beautiful part of the journey and can turn any setback into a comeback.

Cutting Your Losses and Starting Over - Jenn Drummond (2024)

FAQs

What is the quote about cutting your losses? ›

One of the oldest sayings on Wall Street is "Let your winners run, and cut your losers." It's easy to make a mistake and do the opposite, pulling out the flowers and watering the weeds.

When should I cut my losses? ›

Sometimes many of us struggle to pinpoint the best time to cut our losses in a situation. While, of course, if it is no longer serving you, your goals, your purpose, or your physical or mental health can be quality time to go, it when it's draining you more than fulfilling you that it's time to cut your losses.

What does "cutting your losses" mean? ›

idiom. : to stop an activity, business, etc., that is failing in order to prevent more losses or damage. With the economy continuing to do poorly, many investors decided to cut their losses and sell their stocks.

How to cut your losses in trading? ›

Set Stop Losses

The stop-loss order prevents emotions from taking over and will limit your losses. Importantly, once the stop loss is in place, do not adjust it as the stock price moves lower. It makes more sense to adjust the stop price when shares are moving higher.

What is the best quote for grief and loss? ›

Only time and tears take away grief; that is what they are for.” “So it's true, when all is said and done, grief is the price we pay for love.” “I will not say: do not weep; for not all tears are an evil.” “The weird, weird thing about devastating loss is that life actually goes on.

What is the 7% stop-loss rule? ›

However, if the stock falls 7% or more below the entry, it triggers the 7% sell rule. It is time to exit the position before it does further damage. That way, investors can still be in the game for future opportunities by preserving capital. The deeper a stock falls, the harder it is to get back to break-even.

What is the cut your losses principle? ›

The golden rule of stock investing dictates cutting your losses when they fall 10 percent from the price paid, but common wisdom just might be wrong. Instead, use some common sense to determine if it's time to hold or fold. Diversification.

How do I cut my losses and move on? ›

Recognize when something isn't working, adapt to change, and be open to new possibilities. Remember, the most successful individuals and businesses are not the ones who never face obstacles but those who can quickly adapt, pivot, and cut their losses when necessary. Don't be afraid to try something new and take risks.

Why is it hard to cut losses? ›

Surface level analysis of why humans won't easily cut losses says it's because we don't want to admit we were wrong or that we don't want the loss itself. True…But dig deeper, and you'll see that the root of this problem is actually a fear of failure.

What is a word for cut your losses? ›

Synonyms for Cut One's Losses

Minimize damage. Stop the bleed.

What does cut your losses short and let your winners run mean? ›

As the famous saying in the stock market goes, “Cut your losses short and let your profits run.” It means exit early while you're running into loss and have patience while you're incurring profits.

At what point should I cut my losses on a stock? ›

Others will take on as much as a 10-15% loss before finally coming to terms with their reality and putting an end to the madness. A good rule of thumb that most investors live by is to cut losses anytime a stock falls 5-8% below the price you purchased it at.

When should I exit a stock? ›

Fundamental components showing it's time to exit a stock include declining profit, negative changes within the company's industry or administrative environment, or a shift in its long-term development prospects.

Should you sell at a loss and buy back? ›

If you sell a stock at a loss and quickly buy it back or keep investing in the stock after buying it back, the IRS generally won't allow you to write off the loss on your federal tax return.

What is the idiom of cut your losses? ›

If you cut your losses, you stop doing what you were doing in order to prevent the bad situation that you are in becoming worse.

What is the greatest loss quote? ›

Death is not the greatest loss in life. The greatest loss is what dies inside us while we live.

What is the cut your losses theory? ›

This approach means losses are cut early, while a profitable position is held as long as it keeps going up. The CLE-LPR strategy generated a 1.4% higher annual return over the period with the same risk measured as standard deviation of daily returns, and roughly the same average exposure to the stock market of 70%.

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