what is disposition effect?
the habit of selling winners too early and holding losers too long.
selling a loser feels like admitting a mistake. researchers have described this pattern since the 1980s.
related words
- concentration having a large share of everything in one asset, platform, chain or wallet.
- FOMO fear of missing out: buying because something is moving and others are talking about it.
- correlation how much two things tend to move together, from −1 (move in opposite directions) to +1 (move perfectly in step).
part of the topic risk: free articles, more words and the guide.
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