Capital Investment Advisors

#35 – Loss Aversion: Combatting The Difficulties Of Investing

Investing is difficult, and for some of us, it’s very hard to begin the process. Not only are we cautious of starting, but we can become cautious about staying in the market. The hesitancy some investors face stems from an inherent behavioral trait. The prewired trait can be either conquered or leave us in a vicious cycle that will ruin our chances at a return on our investment.

In today’s podcast episode, Wes dives into loss aversion, the psychological makeup that makes investing so tough for humans. He also shares a personal experience regarding loss aversion, the pain of losing versus the pleasure of gaining, four steps that we can take to combat the inherent behavior, and how those steps can increase our investing success.

Disclosure: This information is provided to you as a resource for educational purposes and as an example only and is not to be considered investment advice or recommendation or an endorsement of any particular security.  Investing involves risk, including the possible loss of principal. There is no guarantee offered that investment return, yield, or performance will be achieved.  There will be periods of performance fluctuations, including periods of negative returns and periods where dividends will not be paid. Past performance is not indicative of future results when considering any investment vehicle. The mention of any specific security should not be inferred as having been successful or responsible for any investor achieving their investment goals.  Additionally, the mention of any specific security is not to infer investment success of the security or of any portfolio.  A reader may request a list of all recommendations made by Capital Investment Advisors within the immediately preceding period of one year upon written request to Capital Investment Advisors.  It is not known whether any investor holding the mentioned securities have achieved their investment goals or experienced appreciation of their portfolio. This information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. This information is not intended to, and should not, form a primary basis for any investment decision that you may make. Always consult your own legal, tax, or investment advisor before making any investment/tax/estate/financial planning considerations or decisions.

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