Phrases with «disposition effect»

The term "disposition effect" refers to the tendency of people to sell their winning stocks too soon and hold onto their losing stocks for too long. In other words, it means people have a tendency to quickly sell stocks that are making them profits, but hang on to stocks that are making them losses, hoping for a turnaround. Full definition

Sentences with «disposition effect»

  • This fallacy is known as the disposition effect. (gobankingrates.com)
  • Definitions of CONFIRMATION BIAS, DISPOSITION EFFECT and EXPECTED RETURN in The Devil's Financial Dictionary (jasonzweig.com)
  • Common biases plaguing investors include: representative bias, cognitive dissonance, home country bias, familiarity bias, mood and optimism, overconfidence bias, endowment effects, status quo bias, reference point and anchoring, law of small numbers, mental accounting, disposition effects, attachment bias, changing risk preference, media bias and internet information bias. (investopedia.com)
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