The Secret to Investing? Outwit your Brain

[Dennis Ng]

People are more likely to sell stocks that has gone up in value, rather than cutting loss on a stock that has gone down in price.

This is called "Loss Aversion" whereby people attaches more "value" to avoiding the pain of Losses than an equivalent dollar in Gain.

People try to postpone a loss for as long as possible....in the end, a person's portfolio comprises of stocks that all gone down in value, cos they sold all the stocks that made money...

http://www.youtube.com/watch?v=c0IjrEIP ... r_embedded#!