Yes, watching your investments go down, biting the bullet to...

Yes, watching your investments go down, biting the bullet to admit you made a mistake and take a loss can be very hard for even experienced investors. The issue is often compounded by novice investors who overcommit early on, so when a stock really does become really cheap - it is difficult for them to take the opportunity.

One way I try to approach it is to reset my mind and ask myself - if I did not already hold this stock, would I buy it now, or is there a better opportunity elsewhere? All investments for me a relative and the risk-reward changes all the time - a good investment today, might not be so good in 6 months, while another overpriced stock 6 months ago could turn out to be cheap today. It's hard to have this flexibility in our thinking, and people often are too flexible - and end up trading rather than investing or inflexible and get stuck riding a stock up and down.