Learning from past mistakes is often the best way to grow. However, a study by researchers Brad M Barber and Terrance Odean shows that individual investors often ignore this wisdom and instead simply repeat behaviours that triggered a pleasant experience in the past, though there may be no correlation. They also found that investors held on to losing investments and didn’t make many attempts to explore other investment options.

 

Title: The Behavior of Individual Investors
Source: Social Science Research Network