D behavioral finance

Behavioral finance D (or "Disposition Effect") refers to investors' tendency to hold onto losing investments too long and sell winning ones too quickly. This bias is driven by emotions like regret and hope, leading to irrational decision-making. Investors often avoid realizing losses to prevent feeling bad and prematurely cash in gains to lock in positive feelings. Recognizing this pattern helps in understanding why markets sometimes behave unpredictably and why investors may not always act in their best financial interest, highlighting the impact of human psychology on investing behaviors.