The Disposition Effect

I’ve learned to “trim” instead of sell.

People as soon as they see shares down…😆 “Piece of shit gave up gains”…😆 A stock will be up 50x and down 50% and people act like it’s crashed..😆

I think the issue is with the cases when you sell and stop watching the company. If you know the story, then I would sell and then wait for the price to dip to buy the stock with lower price, of course if the story still holds.

When I hold winners it turns into a loser and when I sell a winner it pumps another 20%

The disposition effect is so real—selling winners too early. You and @JohnWuestlbik2 are my go-to finance accounts.

I believe Thaler discusses this in Misbehaving being a “symptom” Loss Aversion

Guilty of doing this but I am not trying to be most investors. I learned from my mistakes 😂

Most of the time it is better to add to winners. I have learned also to let you winners run unless there is a reason not to.

Very real. Made a mistake of buying PLTR at $45 in early 2022, then selling for ~$22 in late 2022 seeing the downtrend. If only id known! It was an expensive but valuable lesson at age 22.

TSLA. NVDA. SDSK. RR.L. Sold at 75-100% gain. Could have held for 2-3-4-5x. Kept stocks like... ungh... TLRY. From 17$ to 2$. Yep.