FYI: If you’ve ever been at a blackjack table, you know that it’s nice to win $100, but it really sucks to lose it.
Investors are no different than gamblers in that they ascribe different values to an equivalent gain or loss. The bad news is that we’re all pre-programmed with loss aversion. The good news is that we can decide, to a certain extent, how often we choose to see losses.
The more you look at your portfolio, the more likely you are to see red, and the more likely you are to see red, the more likely you are to do something you will regret later. This can be seen clearly in the GIF below, courtesy of Nick Maggiulli.
Regards,
Ted
https://theirrelevantinvestor.com/2019/04/11/how-to-improve-your-risk-adjusted-returns/
