Stewart Fitzell @defense_investor: "𝗠𝗔𝗦𝗧𝗘𝗥𝗜𝗡𝗚 𝗬𝗢𝗨𝗥 𝗘𝗠𝗢𝗧𝗜𝗢𝗡𝗦 -𝙊𝙫𝙚𝙧𝙘𝙤𝙢𝙞𝙣𝙜 𝙩𝙝𝙚 𝙁𝙚𝙖𝙧..."

Ireland

𝗠𝗔𝗦𝗧𝗘𝗥𝗜𝗡𝗚 𝗬𝗢𝗨𝗥 𝗘𝗠𝗢𝗧𝗜𝗢𝗡𝗦 -𝙊𝙫𝙚𝙧𝙘𝙤𝙢𝙞𝙣𝙜 𝙩𝙝𝙚 𝙁𝙚𝙖𝙧 𝙤𝙛 𝙇𝙤𝙨𝙨𝙚𝙨 𝙞𝙣 𝙄𝙣𝙫𝙚𝙨𝙩𝙞𝙣𝙜 Ever felt more pain losing $100 than joy gaining $100? You're not alone. In investing, this psychological quirk is known as loss aversion, part of Prospect Theory, developed by Nobel laureates Daniel Kahneman and Amos Tversky. I'd like to introduce you to this theory and give you some tips on how to overcome it. ▪️𝙏𝙝𝙚 𝙁𝙚𝙖𝙧 𝙤𝙛 𝙇𝙤𝙨𝙞𝙣𝙜 Being a Popular Investor is something I really enjoy doing. The interactions and engaging with copiers and followers and helping people grow their investment is very rewarding. Copiers come and go which is part of the process. What I and other Popular Investors have noticed is that often a new copier will leave as soon as their investment dips slightly into the red. This may be only a few days or weeks after starting a copy. Markets go up and down regularly so red days, weeks and months are part of what we do. 𝘚𝘰 𝘸𝘩𝘺 𝘪𝘴 𝘪𝘵 𝘵𝘩𝘢𝘵 𝘴𝘰𝘮𝘦 𝘱𝘦𝘰𝘱𝘭𝘦 𝘭𝘰𝘴𝘦 𝘵𝘩𝘦𝘪𝘳 𝘯𝘦𝘳𝘷𝘦 𝘢𝘱𝘱𝘢𝘳𝘦𝘯𝘵𝘭𝘺 𝘴𝘰 𝘦𝘢𝘴𝘪𝘭𝘺? 👇 Kahneman and Tversky's research found that 𝙡𝙤𝙨𝙨𝙚𝙨 𝙛𝙚𝙚𝙡 𝙩𝙬𝙞𝙘𝙚 𝙖𝙨 𝙥𝙖𝙞𝙣𝙛𝙪𝙡 𝙖𝙨 𝙚𝙦𝙪𝙞𝙫𝙖𝙡𝙚𝙣𝙩 𝙜𝙖𝙞𝙣𝙨 𝙛𝙚𝙚𝙡 𝙧𝙚𝙬𝙖𝙧𝙙𝙞𝙣𝙜. In practical terms, a -10% return on your portfolio can feel twice as bad as a +10% return feels good. This emotional bias often pushes investors to make irrational decisions—selling winning stocks too soon to lock in gains, or worse, holding onto losing stocks hoping they’ll bounce back. But here’s the paradox: overcoming this bias is essential for long-term success. Great investors don’t just pick the right stocks—they master their emotions. The key is to stick to a strategy, embrace volatility, and view losses as part of the journey, not the end. ▪️𝙃𝙚𝙧𝙚'𝙨 𝙖 𝙛𝙚𝙬 𝙩𝙞𝙥𝙨: ✅️ 1. Set Clear Investment Goals: Focus on long-term targets rather than short-term market movements. This helps you avoid emotional reactions to temporary losses. ✅️ 2. Use Dollar-Cost Averaging: Investing a fixed amount regularly reduces the impact of market volatility and prevents panic decisions when prices drop. ✅️ 3. Reframe Losses as Opportunities: View market downturns as chances to buy quality stocks at lower prices, rather than as failures. ✅️ 4. Diversify Your Portfolio: A well-diversified portfolio spreads risk and reduces the emotional impact of any single loss. ✅️ 5. Limit Portfolio Checks: Constantly monitoring your investments amplifies the emotional response to losses. Check in periodically, not daily. ✅️ 6. Pre-Commit to Your Strategy: Write down your investment plan and reasons for buying assets. Revisit this when tempted to sell during downturns. ✅️ 7. Seek Professional Guidance: If emotions get overwhelming, consult a financial advisor to keep you on track. ✅️ 8. Copy a Popular Investor The great thing about eToro is that you can choose to put these investing decisions partially into the hands of someone else by automatically copying their trades. Do your research, pick a person who aligns with your risk appetite and accept that along the way there will be some ups and downs. 👍 Please like, comment and share - this really helps. Regards, Stewart 🔹️𝙋𝙤𝙧𝙩𝙛𝙤𝙡𝙞𝙤 𝙄𝙣𝙩𝙧𝙤𝙙𝙪𝙘𝙩𝙞𝙤𝙣 & 𝙁𝘼𝙌 etoro.tw/3BqjOb2 ▪️Please note, this is not investment advice ▪️Ref: Kahneman, D., & Tversky, A. (1979). Prospect Theory: An Analysis of Decision Under Risk. $SPX500 $NSDQ100 $NVDA (NVIDIA Corporation) $MSFT (Microsoft) $BTC

5 Mentioned

SPX500

NSDQ100

NVDA

NVIDIA Corporation

MSFT

Microsoft

BTC

Bitcoin

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