Impact
• Holding on to losing investments for too long, hoping to break even.
• Avoiding potentially profitable investments due to fear of loss.
Example
An investor holds a falling stock in her portfolio, unwilling to sell because she does not want to "realize" the loss, even if there are better opportunities elsewhere.
Impact
• Holding on to losing investments for too long, hoping to break even.
• Avoiding potentially profitable investments due to fear of loss.
Example
An investor holds a falling stock in her portfolio, unwilling to sell because she does not want to "realize" the loss, even if there are better opportunities elsewhere.