behavioral-finance(2)


Disposition effect

When doing stock investing, we tend to sell off stocks that do well/increase in price - and keep the stock that is performing poorly.

Tagged With: Cognitive Bias, cbias-act-fast, We want to finish things, behavior, behavioral-finance,

Prospect theory

We prefer to avoid making a loss over making a profit of the same value.

Tagged With: behavior, behavioral-finance, behavioral-economics,