Why Loss Aversion Makes You Lose Money
A woman buys a stock at $50. It climbs to $65, and she feels pleased but does nothing. Then it slides to $45, ten dollars below what she…
-
-
Why Crowd Psychology Wrecks Even Smart Investors
In November 1999, a software engineer with no background in finance sold his index fund and bought shares in a company that had never turned a profit and…
