Loss aversion bias!

Loss aversion bias is when investors fell the pain of losses twice as much as the gain of profits. Nobody likes to book a loss. It obviously pinches especially when it is your hard-earned money. The degree of loss has relatively more impact either psychologically or emotionally than an equivalent degree of gain. If you are a trader, then one must learn how to avoid loss aversion bias. There will be times when you will have to book losses but at the same time there will be opportunities to cover those losses. Same holds true if you are an investor when you might end up buying the wrong script.