Loss Aversion Bias, also known as Loss Aversion, is a cognitive bias that refers to the propensity of people to strongly favour avoiding losses over achieving similar gains. In other words, people often experience sorrow from losses more strongly than joy from comparable gains.
✅To deal with Loss Aversion Bias, you must be aware of its influence on decision-making.
✅Establish specific investment objectives, diversify your holdings to reduce risk, and adopt a long-term mindset, paying more attention to fundamentals than to short-term losses.
✅Review and adjust your portfolio frequently, and consider seeking professional advice to help you make rational decisions.
Disclaimer- The information provided on our platform is intended only for simplification and education purposes, and should not be considered as an investment advice.
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Posted On: 19 Jul 2023 5:36 PM
