- The emotional aspects associated with investing and the negative sentiment associated with recognizing a loss. The fear of financial losses can be overcome, but it requires looking at what has happened logically and learning from it so that you can avoid the same situation in the future.
The difference between professional traders and those who are just getting started is their ability to handle the emotions associated with realizing a loss. Holding a losing position can cripple a rookie investor because many decide to hold and hope that the stock will come back to their entry price. The worst case scenario is if the investor sells when the stock has reached a bottom.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Psychology of religion — is the psychological study of religious experiences, beliefs, and activities.History William James U.S. psychologist and philosopher William James (1842 1910) is regarded by most psychologists of religion as the founder of the field. He served as … Wikipedia
Psychology — affective computing affective forecasting amygdala hijack attentional blink bibliotherapy brain fingerprinting busy brain … New words
Loss aversion — In prospect theory, loss aversion refers to the tendency for people strongly to prefer avoiding losses than acquiring gains. Some studies suggest that losses are twice as powerful, psychologically, as gains.Loss aversion was first convincingly… … Wikipedia
Psychology of monogamy — The psychology of monogamy deals with the thoughts, feelings, and behaviors that commonly occur in monogamous relationships. This article deals with the psychology of monogamy in human beings.Psychological studies of sexual monogamy are sparse.… … Wikipedia
Psychology (The separation of) from philosophy — The separation of psychology from philosophy Studies in the sciences of mind 1815–1879 Edward S.Reed THE IMPOSSIBLE SCIENCE Traditional metaphysics The consensus of European opinion during and immediately after the Napoleonic era was that… … History of philosophy
Psychology of torture — The psychological effects associated with torture, or the threat of torture, can be severe. The psychological suffering coupled with physical pain affects the torture subject and serves the torturer s (conscious) interests. The torturer can also… … Wikipedia
Occupational health psychology — Psychology … Wikipedia
List of psychology topics — This page aims to list all topics related to psychology. This is so that those interested in the subject can monitor changes to the pages by clicking on Related changes in the sidebar. It is also to see the gaps in Wikipedia s coverage of the… … Wikipedia
Transpersonal psychology — is a school of psychology that studies the transpersonal, self transcendent or spiritual aspects of the human experience. The Journal of Transpersonal Psychology describes transpersonal psychology as the study of humanity’s highest potential, and … Wikipedia
Buddhism and psychology — overlap in theory and in practice. Over the last century, three strands of interplay have evolved: * Descriptive phenomenology: Western and Buddhist scholars have found in Buddhist teachings a detailed introspective phenomenological psychology… … Wikipedia