It makes the investor hold onto losing investments for too long, hoping they will recover, instead

Loss Aversion: Fear of More Loss than Enjoyment of Gain
Loss aversion refers to the best-documented psychological phenomenon wherein people suffer from loss much more than they enjoy a similar-sized gain. The pain of losing $100 hurts much more than the pleasure of gaining $100.

It makes the investor hold onto losing investments for too long, hoping they will recover, instead of cutting losses and moving on to Loss Aversion: Fear of More Loss than Enjoyment of Gain
Loss aversion refers to the best-documented psychological phenomenon wherein people suffer from loss much more than they enjoy a similar-sized gain. The pain of losing $100 hurts much more than the pleasure of gaining $100.

It makes the investor hold onto losing investments for too long, hoping they will recover, instead of cutting losses and moving on to