πππOne of the hardest emotional biases to overcome in stock investing for me is Loss Aversion. This bias makes me feel the pain of loss much more intensely than the pleasure of a comparable gain. This may lead to decisions that are driven more by fear of losing money than by rational analysis of potential returns.
One of the best examples is Top Glove $Top Glove(BVA.SI)$. This stock is particularly popular during the Covid 19 Pandemic. However its share price has dropped like a rock to the bottom of the ocean.
I should have sold my shares of Top Gloves when it was riding high, but I held on till now, as a reminder of my loss aversion bias when the tide reversed for the stock.
So now I have learnt a valuable lesson on loss aversion and being aware of it helps me to recognise when I am falling into its trap.
@Tiger_comments @Tiger_SG @TigerStars @CaptainTiger @TigerClub
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