Sunk Cost Fallacy - don’t make this common emotional mistake
“The sunk cost fallacy is particularly prevalent in the world of investments. Whether it's in the stock market, real estate, or even a business venture, investors often fall into the trap of holding onto underperforming assets because they’ve already sunk so much money into them. For example, you might continue pouring money into a declining stock, hoping it will bounce back, rather than cutting your losses and reallocating your resources to a more promising opportunity. “
https://thedecisionlab.com/biases/the-sunk-cost-fallacy
Anyone arguing towards leaving a losing investment in place “ avoid locking in losses” is making this emotionally driven mistake.
Making this mistake not only leaves the original capital at risk for further declines, but it punishes you a second time by missing out on any gains that could be had with better investments, thereby making your investment performance even worse.