Manage episode 220716265 series 1044733
The stock market can be a scary place. No one can predict what is going to happen, regardless of the software used or the intelligence of the guy on the TV or radio, no one really knows, not even us. However, we do know a few consistent factors that seem to stick around, such as: the stock market goes down and it goes back up (as long as you are invested properly). In this podcast case study we talk about the pain of losing money versus the joy of making money. Rarely do we ever sit down with anyone who matches the pain of losing $20,000 with the euphoria of making $20,000. I think we all expect to make money in the stock market. That is why when it goes up, we aren't necessarily happy, because it is expected. However, when the market goes down, we are losing our hard earned savings and get nervous it may never recover. Listen to this case study as we describe the phenomenon called "Loss Aversion" and how you can survive these volatile times.