Behavioral finance(2)

Prospect theory

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

Tagged With: behaviour, Behavioral finance, behavioural-economics,

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, Need to Act fast, We want to finish things, behaviour, Behavioral finance,