It doesnt matter if it is winning or losing. (By the way...in trading, you are suppsed to liquidate the losing positions...not hang on to them. ) the costs of the transaction is so minimal ($5-$20) that is doesnt really matter. you can re-enter for the same minimal fee. but at least it can be done...try to liquidate you house...espically now with the market crashing. You are right...You can lose money trading, or investing. However, this can be counteracted by studying and hard work and undersanding risk and economic cycles. If you wanted to be conservative...Buy bonds. As far as your Warren Buffet comparison...you are not taking into account WHY buffet buys and holds. ...he buys HUGE amouns of companies (or the whole thing) and therefore has control over how they are run. you and i dont do that. entirely different.