Permanent loss of capital
Risk & psychologyAlso called: Permanent capital loss, Permanent loss
A fall in value that no amount of waiting can reverse — because the business has been impaired, because the holding cannot be sold at all, or because you sold at the bottom.
In plain terms
The only fall that genuinely costs you money. A price that dropped and recovered took nothing but your comfort; a price that dropped because the earnings power went, or because you were forced out, is gone for good.