XCSFDHG46767FHJHJF
tdp2664 InvestorPlace “I really have to test your knowledge of behavioral finance,” Andrew wrote. ” Why is it that during losses sellers are aversive to sell whereas during gains, sellers are more encouraged to sell?” That, my friends, is one of the great Zen koans for investors. I don’t pretend to know precisely how or why this occurs, but here’s a shot at an explanation: It's plain old human emotion that prompts folks to sell during a crash and buy at the top of a meteoric run – the very opposite of buy low and sell high. Here are the best analogies I can come up with: On the sell side it's kind of like the fact that when you see a Grizzly Bear in the wilderness. Boy Scout guides say you're supposed to stay calm and walk away slowly, but most folks run away screaming. They are too damn scared to think rationally. Or put simply: Human beings
No comments:
Post a Comment