Disposition effect

Selling winners too early and holding losers too long.

In plain English

The direct consequence of loss aversion, and it produces a distribution of small wins and large losses.

Example

An average loser larger than the average winner, at a win rate near 50%.

Trading Psychology

See also

Used in these lessons

We count page views to see which lessons help. No ads, no profiling, no data sold. You can say no and nothing here stops working. Privacy policy