The disposition effect is an anomaly discovered in behavioral finance. It relates to the tendency of investors to sell assets that have increased in value, while keeping assets that have dropped in value. Hersh Shefrin and Meir Statman identified and named the effect in their 1985 paper, which found that people dislike losing significantly more than they enjoy winning. The disposition effect has been described as one of the foremost vigorous actualities around individual investors because investors will hold stocks that have lost value yet sell stocks that have gained value." In 1979, Daniel Kahneman and Amos Tversky traced the cause of the disposition effect to the so-called "prospect theory". The prospect theory proposes that when an individual is presented with two equal choices, one having possible gains and the other with possible losses, the individual is more likely to opt for the former choice even though both would yield the same economic result. The disposition effect can be minimized by a mental approach called "hedonic framing". Overview Nicholas Barberis and Wei Xiong have depicted the disposition impact as the trade of individual investors are one of the most important realities. The influence, they note, has been recorded in all the broad individual investor trading activity databases available and has been linked to significant pricing phenomena such as post-earnings announcement drift and momentum at the stock level. In other conditions, for example in the real estate market, disposition effects were also discovered. Barberis has noted that the disposition effect is not a rational sort of conduct because of the reality of stock market momentum, meaning stocks that have performed well in the past six months appear to perform well in the next six months, and stocks that have done badly in the past six months tend to do poorly in the next six months. This being the case, the rational act would be to hold on to stocks which have recently increased in value; and to sell stocks which have recently decreased in value. However, individual investors tend to do just the contrary. Alexander Joshi has summed up the disposition effect as the disposition that investors have to hold on to losing positions longer than winning positions, saying that investors would illustrate risk-seeking conduct by retaining the losers because they dislike losses and fear preventing them. Alternatively, investors will want to lock in money, so that they display risk-averse conduct