Capital is the first key to successful investing/trading. Holding power is the second key. Without holding power, you are more likely to panic sell during market volatility and causing you to lose money.
But, some people will tell you that holding on losing positions and sitting on paper losses will cause you opportunity costs.
True or not?
What if you still have some available investing capital at hand? What is your opportunity cost? Your opportunity cost for holding on to the losing positions is the current interest rate and nothing more as you still have money to invest in the stock market or other financial instrument.
It is only when you have zero capital left to invest, then you have to seriously consider what is the opportunity costs of holding to those losing positions?
It may be better off for you to bite the fingers to cut losses on some losing positions to recover some capital to invest.
In 2008 Greater Bear, I have used up all my investing capital and left with zero cent. I too bite my fingers and cut losses to recover some investing capital even though I don't have stop-loss strategy. The truth is that you don't need to win back in the same way that you have lost. 2009 Year End Performance Review
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