Emotional intelligence in the stock market

Wishing that your investments went up in value is not a strategy; it’s an aversion to loss. There’s a reason stock prices are down, and there’s a reason that people lose significant amounts of money; people are irrational. Stock prices were inflated, not rational, and people lose money on investments because they refuse to take a small loss and sell, which turns into a larger loss. Selling too early only costs you a potential profit, but it never costs a total loss.

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