The cost of selling winners
Two stocks, two years,
one expensive lesson
|
Stock W |
Stock L |
| Start |
Rs 100000 |
Rs 100000 |
| End of Year 1 |
Rs 120000 (+20%) |
Rs 85000 (-15%) |
| Action taken |
SOLD |
HELD |
| Year 2 return |
+12% (missed) |
-4% (held) |
| End of Year 2 |
Rs 134400 |
Rs 81600 |
The winners you sold outperformed
the losers you held by
3.4 pp
Odean 1998 . next 12 months
Source . Illustrative (table) + Odean 1998 (gap) . Jul 2026
The cost
You walked away from Rs 134400 and sat with Rs 81600.
The rational path was the opposite.