Let’s continue with Max Gunther’s book. One of the axioms he brought out is hope. He has a rather good saying about that – „When the ship starts to sink, don't pray. Jump.”. The words „starts to sink” are important here. You have to be ready to take the fact that half of what you do in your life will go wrong, maybe more than half. But this isn’t as terrible as it may sound – if something goes bad, just get out in a good time.

So if you make a bad decision that costs you money, the best idea is to jump out of the investment in order NOT to lose any more money. And admit it! Many people have difficulties admitting they are wrong so that even just this reason might not make them jump – everything might turn out well, right? NO! Just jump and we’re not kidding. Protecting your ego is usually extremely painful to your wallet or your life generally.

You should accept small losses (and small shall they be if you jump at the right time) as there will be many compared to big gains. But the big gains are then more than worthwhile. Small losses should be valued as they protect us from big losses. Small losses are part of life.