Lesson Four - Loss Aversion

Lesson Four: Loss Aversion

Hitting a golf ball into the water can feel twice as bad as hitting it safely on to the green, so golfers will often look for a safer option - even at the cost of adding strokes to their round. Likewise, volatile markets can tempt investors to avoid risk rather than face the possibility of a loss.

Is loss aversion making you lose sight of your long-term goals?

Behavioural Finance Lessons