stock guru
Guest
|
 Posted: Mon, Jun 4 2007, 5:35 pm EDT Post subject: Behavioral finance |
 |
|
I like the findings offered by behavioral finance:
"Faced with the prospect of selling a stock, investors become emotionally affected by the price at which they purchased the stock. So, they avoid selling it as a way to avoid the regret of having made a bad investment, as well as the embarrassment of reporting a loss."
"People tend to view the possibility of recouping a loss as more important than the possibility of greater gain."
"When a market is moving up or down, investors are subject to a fear that others know more or have more information. As a consequence, investors feel a strong impulse to do what others are doing. "
Links:
http://www.investopedia.com/articles/05/032905.asp
http://www.investopedia.com/articles/02/112502.asp |
|
