On holding losers and selling winners: our emotional brains and the disposition effects

“Our research investigated the selling of losses and gains by UK stock market investors.  In trying to ascertain who is likely to hold losses and sell gains, we conjectured that emotions play a central role in this behaviour.  We found that those investors who rely on emotions/intuition/gut instinct when making decisions are more inclined to hold losses and sell gains.  However, investors who could reappraise emotions were less inclined to show this bias.  Let’s explain how this occurs.”

via On holding losers and selling winners: our emotional brains and the disposition effects | Emotional Finance

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