Think You Missed the Boat on These High-Flying 2020 Stocks? Think Again
People feel about twice as much pain from a financial loss as they do pleasure from an equivalent gain, according to behavioral psychologists. Therefore, investors need to watch out for the powerful cognitive bias that feeling produces, called loss aversion.
But there's another mental quirk that looms just as large during periods like what's occurred over the last six months in the stock market: Fear of having missed out on spiking gains. Call it rally envy.
Maybe your portfolio is beating the market's double-digit rise so far this year, but you still sat out of the 800% surge that Overstock shareholders enjoyed. Or you totally missed NVIDIA's 100% spike. No, it's not rational, but portfolio comparisons like these can still sting.
Source Fool.com
