Tonight's Market Shrinkology: Cutting Losses

On Tuesday evenings, I do a program on StockTwits.TV called Market Shrinkology which focuses on the psychological aspects of trading and investing.

Tonight, I will flesh out a recent post on cutting losses quickly and answer questions about this topic.

If you have questions, you can ask in the comments or feel free to ask me directly on the StockTwits stream.

Below is a paper by Shefrin and Statman titled The Disposition to Sell Winners too Early and Ride Losers too Long. Its a critical piece of  behavioral finance research, germane to tonight’s discussion and essential for those who are interested in market participant experience.

Disposition Effect