Acting Right in a Raging Bull Market
It is easy to sell a stock, when we are sitting on a profit. When we are not, it is not an easy task. It is a natural human tendency to hold on to stocks that have dipped below our purchase price, expecting them to recover, at some point. Behavioural finance experts call it ‘loss aversion’ bias. Often, stocks don’t come up to the purchase price for a very long time, even a couple of years....
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