To be honest I don't really agree with the op about forgetting the factors that cause losses. There are several factors that are often the main problem with a trader's big loss, namely wrong decisions such as trading with shitcoin.
No matter what some people will keep holding, even I have found myself in similar situations many time where the hopes remain high and one just tries to absorb the stress of loss but at the same time hopes the price will recover sooner or later, this do work sometime but mostly I have seen that new coins are not guaranteed to recover fully.
This is how important it is to study the price history of an altcoin. Most of the new coins were initially pumped up to increase their popularity, while the background of the project itself was not very strong which made it unfit for high prices in the long run.