The disposition effect is a well-documented behavioural anomaly where investors tend to sell assets that have appreciated in value prematurely while holding on to depreciating ones for too long. This ...
Back in 2009 I was working at a bank in London, and had begun earning enough money to really start investing. I’d studied behavioral economics all through college and grad school, so I knew I’d be ...
Research consistently finds that investors, and their advisers, are too quick to sell winners and too slow to sell losers. The phenomenon has a name — the disposition effect — and it’s highly studied ...
Investors don't like to lose money. That's understandable. However, it gives rise to a very damaging tendency to hold onto losing positions long after we know in our heart of hearts, the stock is ...
We analyze brokerage data and an experiment to test a cognitive dissonance based theory of trading: investors avoid realizing losses because they dislike admitting that past purchases were mistakes, ...
Disposing stocks or bonds involves selling them on their relevant markets and may lead to capital gains taxes. Significant business asset sales must be reported if exceeding 10% of fiscal year assets, ...
“There is no such thing as buying low” has become popular advice among the fantasy baseball community. Does the classic buy-low opportunity, in which an underperforming player gets moved for $0.50 on ...
Understanding Behavioral Finance When Constructing Portfolios Gain foundational knowledge about the key elements of behavioral finance through case studies, such as the disposition effect and the QMJ ...