Nobody likes losing money, and studies show that we actually feel losses twice as deeply as gains. But loss aversion can hurt you, says an article in Morningstar. Loss aversion…
Tag: loss aversion
The Psychology of Loss Aversion
An article in Psychology Today discusses loss aversion, and how regulating emotion and taking a different perspective can reduce it—and “help people overcome potentially disadvantageous decision biases.” Loss aversion, the…
How To Keep Your Brain From Ruining Your Returns
In his latest column for Seeking Alpha, Validea CEO John Reese says that all investors — even Warren Buffett — are going to make mistakes and pick losing stocks. The…
Study's Findings Challenge Loss-Aversion Theory
One tenet of behavioral finance is the “disposition effect” — the tendency for investors to sell winners rather than losers in their portfolio. And a common reason cited for why…
Battling Your Brain: How Loss Aversion Hurts Investors
Human beings are prone to a variety of behaviors that make them bad investors, and in an article for The Economic Times, Vivek Kaul looks at a major one: “loss…