Do you hold on to your losers forever & sell your winners at small gains?
Do you average a losing position in hope to recover losses quickly?
Does “A loss is not a loss until realized” defines your portfolio strategy? Read On 1/n #LossAversion#investing#markets#Behaviour
Welcome to the world of behavioural economics which studies how subconscious belief (or bias) influences financial decisions. In this case we are taking about a behavioural bias called “Loss Aversion” - simply put, a dislike towards losses. 2/n