What is "gồng lỗ"? Why do investors find it more difficult to overcome this psychology than "gồng lời"?

Most crypto investors have experienced an uncomfortable situation: assets decrease in value, and they hope it will recover. But when prices rise again, they quickly sell for small profits, only to regret it when the price multiplies tenfold. This is the conflict between holding through losses and holding for gains—two common investor mindsets everyone has felt. But why is holding through losses easier, and holding for profits more difficult?

Understanding Holding Through Losses and Gains from an Investor’s Perspective

What is holding through losses? Simply put, it’s the act of persistently holding a position despite its declining value. Investors don’t sell immediately but hope that, in the future, the price will rebound. This can be a reasonable strategy if you believe in the project’s long-term potential, but it can also lead to significant losses if you’re not careful.

Conversely, holding for gains is the mindset of selling quickly when the price rises, aiming to lock in profits and seek new investment opportunities. However, many fear that if they sell, the price might go even higher, causing them to miss out on substantial gains.

Why Are People More Likely to Cling to Holding Through Losses?

Humans have a fascinating psychological trait: we fear losing what we already have more than we fear missing out on what could be. In investing, this means many investors cling tightly to their positions when prices fall, to avoid “cutting losses”—an action that feels like a personal failure.

When your account is down 20-30% and that’s a significant amount of money, your brain tries to cling to any positive signs. You start setting expectations—“It will bounce back,” “The market will recover soon”—and these illusions cause you to ignore real risk signals. Instead of seeing the bigger picture, you focus only on information that supports your view.

Especially in the crypto market, if you lack technical analysis skills or don’t understand market cycles, holding onto coins while in the red can become a nightmare. You won’t know if it’s a temporary correction or a long-term downtrend, and this uncertainty paralyzes you, making it impossible to decide your next move.

From Theory to Practice: Solana and Costly Lessons

But wait—there are times when holding through losses is the right decision. It all depends on how well you understand the project.

Take Solana as an example. In its early days, SOL rose to $5, then experienced fivefold growth. Many investors sold at around $100, thinking they had made good profits. But if they understood Solana’s potential and believed in its long-term prospects, they could have held until the price hit $240—a huge increase they missed.

This highlights why deep project knowledge is crucial. A good project may go through prolonged downtrends lasting months or even longer. Many NFT-Fi altcoins seem to have bottomed out, but when the market recovers, their prices could increase 10-20 times. If you sell at the bottom, you miss out on these gains.

However, this doesn’t mean you should always hold your coins. It simply means that if you trust the project, you can use strategies like DCA (Dollar-Cost Averaging)—buying more as the price drops—to lower your average cost, then wait for the upward wave.

Skills Needed to Avoid Falling into the Holding-Through-Losses Trap

So, how can you make sound investment decisions without being driven by emotion?

First, understanding the project thoroughly is an essential first step. You need to know what the project does, who the team is, what their roadmap entails, and whether it addresses a real market problem. A project with strong fundamentals is more likely to recover after downturns.

Second, develop technical analysis skills. Recognizing market waves, support and resistance levels will give you more confidence in deciding when to hold or sell.

Third, set clear rules before investing. Define your profit targets, maximum acceptable losses, and stick to these rules disciplinedly. This helps prevent impulsive decisions driven by emotional swings.

Finally, remember that holding through losses isn’t always bad, and taking profits isn’t always good. The key is knowing when to apply each strategy, which requires skill, knowledge, and especially discipline. When you possess these elements, making decisions about holding through losses becomes much easier.