Title: Market Problems? Blame Investors
Headings: Market Problems? Blame Investors
Market Problems? Blame Investors
Key Takeaways
Following the Crowd
We Can't Control Everything
Holding Out for a Rare Treat
Xenophobia
A Handy List
The Bottom Line

Content: Investors can fall prey to both the desire to have something to show for their time and the aversion to admitting they were wrong. Thus, some investors hold onto a stock that is losing, praying for a reversal of their falling angels; other investors, settling for limited profit, sell stock that has great long-term potential. The more an investor loses, however, the larger the gain must be to meet expectations. One of the big ironies of the investing world is that most investors are risk averse when chasing gains but become risk lovers when trying to avoid a loss (often making things much worse). If you are shifting your non-risk capital into high-risk investments, you're contradicting every rule of prudence to which the stock market ascribes and asking for further problems. You can lose money on commissions by overtrading and making even worse investments. Don't let your pride stop you from selling your losers and keeping your winners. Xenophobia
People with this psychological disorder have an extreme fear of foreigners or strangers. Even though most people consider these fears irrational, investors engage in xenophobic behavior all the time.