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Why Can't Investors Let Go of Their Portfolio's Losers?
I get pretty frustrated with everyone telling us we're always wrong. One guy does studies or writes articles that tell us we're too emotional and we sell when things are down and don't buy until things are up too much already. The next guy tells us we hold on to our losers and sell our winners and that's bad for us. What's left? I usually figure there's a sentence or two in every article that tells you whether the author has a clue. Here's the one from this article:
"So how can investors decide when they're being rational ("I want to hold onto this stock because I still believe in the company") or irrational ("I want to hold onto this stock because I can't accept pain of realizing the loss")?
One way is to avoid individual stocks, period, and invest in a total market portfolio of exchange-traded funds or mutual funds."
Maybe the question we should be asking is "Why can't the Media Let Go of it's Losers"
Comments
"So how can investors decide when they're being rational ("I want to hold onto this stock because I still believe in the company") or irrational ("I want to hold onto this stock because I can't accept pain of realizing the loss")?
One way is to avoid individual stocks, period, and invest in a total market portfolio of exchange-traded funds or mutual funds."
Maybe the question we should be asking is "Why can't the Media Let Go of it's Losers"