Behavioural Finance concepts

[KW]

Why do people sell their winners, and hold their losers?  Behavioural Finance explains the "Disposition Effect"

https://www.afr.com/wealth/personal-finance/why-we-sell-winners-and-hold-losers-20230418-p5d1es

No matter who said it first, "cutting the flowers and watering the weeds" is a perfect analogy for a terrible investor weakness – selling winners too soon and holding on to losers.
"Over time, that will bias your portfolio to increase your weight of losers over winners....Obviously something to avoid."

[KW]

A good summary of some basic investing principles to live by. 

Here are the investment rules you will find in common with many of the greatest investors in history.

• Cut Losers Short And Let Winners Run.
• Investing Without Specific End Goals Is A Big Mistake.
• Emotional And Cognitive Biases Are Not Part Of The Process.
• Follow The Trend.
• Don't Turn A Profit Into A Loss.
• Odds Of Success Improve Greatly When Technical Analysis Supports Fundamental Analysis.
• Try To Avoid Adding To Losing Positions.
• In Bull Markets, You Should Be "Long." In Bear Markets – "Neutral" Or "Short."
• Invest First with Risk in Mind, Not Returns.
• The Goal Of Portfolio Management Is A 70% Success Rate.

https://www.zerohedge.com/markets/conviction-or-how-lose-lot-money-investing