Loss aversion is a psychological condition of a person who tends to always evaluate investment instruments in terms of losses versus profits. So the condition of loss aversion will greatly influence investors in making decisions and if loss aversion is allowed to continue or is not handled well, investors will always lose golden opportunities. Some of the characteristics of an investor's loss aversion are that he prefers deposits and bonds over shares, while still holding on to unprofitable investment instruments. In my opinion, the right way to avoid loss aversion is to expand your knowledge about the world of investment and increase your skills and experience.
How to Avoid Loss Aversion in the Investment World
- Thread starter Suba
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