Loss aversion is a bias to feel the pain of losses more strongly than the pleasure of gains - and this can impact how you invest for your retirement. Nobel Prize-winning economist Daniel Kahneman’s ...
Loss aversion is a psychological phenomenon that refers to the tendency of people to strongly prefer avoiding losses rather than acquiring equivalent gains. In other words, the pain of losing ...
Given the choice, most of us would rather avoid a loss than reap a reward. This can help us avoid making expensive mistakes, but it can also make us risk averse and prevent us from taking advantage of ...
I am loss averse. I once almost went crazy looking for a wallet that I thought I had lost. As I ransacked the closets, checking every pocket, I got increasingly anxious. Thoughts of the money in the ...
One of the more well-known behavioral biases is loss aversion. Loss aversion is a common trait people display where they feel the pain of losing money much more acutely than the pleasure from gains.
Daniel Liberto is a journalist with over 10 years of experience working with publications such as the Financial Times, The Independent, and Investors Chronicle. Robert Kelly is managing director of ...
What takes place in investors' minds when they buy assets, hold on to stocks, trim their positions and make other decisions with their capital? Knowing how investors think can lead to a better ...
Life is a series of choices. Every time you make a decision, there is a possibility that things won’t go as expected (risk) or that something bad will happen (loss). Aversion to risk and loss have ...
Brendan Markey-Towler does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations ...
The idea of loss aversion—that, to an irrational degree, individuals avoid losses more than they pursue gains—has been influential in the field of behavioral finance. It has been imputed to drive ...