Thursday, October 19, 2006

Ever made a decision that you end up laden with regret?

In behavorial finance, academics did research and observed that people have tendency to put more money in money-losing stocks when they are holding on to one.

Reason being that they have tendency to think that they may recoup their losses one day when the market is bullish again. Most investors or rather, all investors are adverse to risk. In other words, being human, we are afraid of losing... too much.

Lingering on that tiny ray of hope.

In relationships, we'll invest money and emotions and sometimes, when we reflect and gauge the returns we reap out of it, it gets smaller and smaller and by the time you know it and it hits you hard that you've lost quite abit. You didn't get back what you've anticipated.

Or have you anticipated you won't get anything back but still carried on "investing"?

When will the market be bullish again?



No sight of any flowers from Rong Shan today.

No comments: