This phenomenon reflects loss aversion, and Spencer mentions that this investing bias is normal. "Loss aversion is natural and affects everyone. People seek pleasure and want to avoid pain," he says.

explores the influence of optimism bias on decision-making in cyber risk management, and introduces a novel model that ...

Then there is the most common bias among small traders: loss aversion bias a reluctance to accept you have a loser and take the loss early. The emotion behind this is the pain you would feel of ...

The loss aversion bias. This is a cognitive bias in which the emotional impact of a loss is felt more intensely than the joy of an equivalent gain. For example, when you lose 20 dollars and then ...

Fifty-nine percent of the affluent investors surveyed diagnosed themselves with overconfidence bias. Loss Aversion. All ...

Instead, investors tend to react to market movements with a range of biases, from overconfidence to costly loss-aversion bias. Behavioral finance, pioneered by Daniel Kahneman and Amos Tversky ...

plus money-saving tips with our free twice-daily newsletter Aversion to loss is potentially the most threatening cognitive bias. Loss aversion is the theory that we feel the pain of loss twice as ...