Loss Psychology

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Dictionary Says

Definition of 'Loss Psychology'

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.
Investopedia Says

Investopedia explains 'Loss Psychology'

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. 
Search results for

'Loss Psychology'

  • Taking The Sting Out Of Investment Loss

    http://www.investopedia.com/articles/stocks/08/learn-loss.asp
    ... A logical and disciplined handling of "loss psychology" is important in
    order to turn negative experiences into positive ones. In ...

  • The Importance Of Trading Psychology And Discipline

    http://www.investopedia.com/articles/trading/02/110502.asp
    ... about trading psychology, see Master Your Trading Mindtraps or discuss at Trading
    Psychology forum ... to get out at $10.25, or at $9.75 to put a stop loss or stop ...

  • How Market Psychology Drives Technical Indicators

    http://www.investopedia.com/articles/trading/02/121602.asp
    ... losses will, in a few weeks or months, aggregate into one very large loss. ... This is
    true collective psychology at work: amateur traders and investors who are ...

  • How To Read The Market's Psychological State

    http://www.investopedia.com/articles/trading/03/010603.asp
    ... A loss of a contract (and a declining open interest) points to the likely ... There are
    times when reading the market trends and market psychology using specific ...

  • An Introduction To Behavioral Finance

    http://www.investopedia.com/articles/02/112502.asp
    ... The idea that psychology drives stock market movements flies in the face of established
    theories ... Conversely, offer a choice of a sure loss of $50 or, on a flip ...

  • Tax-Loss Harvesting: Reduce Investment Losses

    http://www.investopedia.com/articles/taxes/08/tax-loss-harvesting.asp
    ... For more on the strategies and psychology of managing investments in a
    down market, read Taking The Sting Out Of Investment Loss. ...

  • The Myth Of Profit/Loss Ratios

    http://www.investopedia.com/articles/forex/07/profit_loss.asp
    ... such as making sure your profit is more than your loss per absolute ... and trading
    approaches that combine technicals, fundamentals and the psychology of trading ...

  • Master Your Trading Mindtraps

    http://www.investopedia.com/articles/trading/07/trading_mindtraps.asp
    ... the most difficult step of their initiation to trading: trading psychology. In other
    words, while it may be very easy to trade when the risk of loss does not ...

  • The Psychology Of Support And Resistance Zones

    http://www.investopedia.com/articles/technical/02/061802.asp
    ... To learn more, refer to Gauging Major Turns With Psychology ... Find out how to build
    these charts showing buy, sell, stop-loss and take-profit ... Read More ยป; ...

  • Gauging Major Turns With Psychology

    http://www.investopedia.com/articles/trading/07/psychology_reversal.asp
    ... Following the psychology of the market will help you as a trader distance yourself
    from ... Find out how to build these charts showing buy, sell, stop-loss and take ...

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