Dividend logo

Sweaty palms. A slow, creeping feeling of dread. Perhaps even a moment of sheer terror. For most of us, that’s exactly what happens when we log onto our brokerage accounts and notice that the stocks and funds in our account are flashing red. It turns out that losses make us feel downright terrible.

And that’s a huge issue.

That feeling of dread while we’re losing money during a bear market or down day causes us to do some pretty silly things with our portfolios. For investors, overcoming that fear and having a steady hand are vital to getting the most out of our portfolios over the long term.

To learn about Growth and Momentum investing strategies, follow Dividend.com’s Dividend Education section.

Panic Sets Losses

Our brains play heavily into our investments. In fact, there’s an entire school of thought on the subject dubbed Behavioral Economics. In it, the science of brains comingles with our financial decisions; perhaps nothing else in behavioral economics is as important as the idea of loss aversion.

To read the Full Story, Go Premium or Log In

Popular Articles

News

Hershey Co, Discover Financial Services and Expedia Group Increase Dividend

Each week, stocks, funds and REITs announce upcoming dividend payouts. Track how your portfolio’s...

News

Johnson & Johnson, S&P Global and Equinix Go Ex-dividend This Week

There are many securities going ex-dividend this week starting Monday, August 19. For income...

Premium Stock%20market%20index%20going%20down
News

The Market Wrap for August 16: The Signs Start to Flash Red

This week, traders were faced with a continuing deterioration in the global economy. Worries in...