Needless to say, psychology is one of the key elements in investment. Yet, the role of psychology in investment is often underestimated by lots of people, even knowledgeable investors, because they are simply not conscious and aware of its importance on an investor’s decision making.
If you are an investor in Singapore and you would like to know more about this topic, below are two interesting and valuable concepts that would help you steer clear of incorrect and inappropriate investment choices:
Loss Aversion
So hold on, here comes a remarkable experiment. If you are to select between:
A) a little loss, and
B) a 50-50 chance to have a consistent loss or to break even.
Which of ...
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