LibraryScenariosWhy emotional pain drives poor market timing
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Why emotional pain drives poor market timing

I sold all my tech stocks right before they recovered because I could not handle watching them drop anymore, even though nothing had fundamentally changed.

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More people experience this than they realize.

What we've seen

The psychological discomfort of paper losses can override rational analysis and force premature exits from sound investment positions.

Ideas that help explain it
Worth thinking about

“Where Are You with Behavioral economics — biases in financial decisions?”

If this sounds familiar, the Library can help you find the bigger picture.