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Browse & Filter Biases

Showing 187 biases.

Need To Act Fast

To get things done, we tend to complete things we've invested time and energy in

Disposition effect

Description

The tendency of investors to sell assets that have increased in value, while keeping assets that have dropped in value.

Example 1:

An investor sells winning stocks too early to lock in small gains but holds onto losing stocks hoping they'll rebound, often missing out on larger gains or incurring further losses.

Example 2:

An investor sells winning stocks too early to lock in gains but holds onto losing stocks too long, hoping they will recover, often leading to suboptimal portfolio performance.

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