While the study doesn't uncover why some investors may be more vulnerable to emotional selling, financial experts say the findings raise further questions about how these factors — gender, age, marriage and family — affect behavior.
The research suggests these sellers have emotional overreactions defined by their decisions having the opposite of the intended effect, said Amanda Clayman, a financial therapist in Los Angeles.While most investors are vulnerable to emotional choices, the findings from MIT align with other research showing men may be more prone to acting on their impulses.
Women are not as likely to take a huge decisive action like this because they're not quite sure that their impulse or their feeling is correct."Women are not as likely to take a huge decisive action like this because they're not quite sure that their impulse or their feeling is correct," Clayman said., and trying to time the market often leads to lower performance.from the University of British Columbia finds.
"They sometimes feel that if they know enough about a subject, they should be able to control the outcome," she said. "Unfortunately, there are far more variables at play when attempting to time the market." And once these investors get lost, it can be tough to seek guidance if they feel it's their role to solve the problem on their own, she said.
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I hope you are not saying men over 45, married with kids and happily invested are the dumbest guys in Wall St. Most people forget that we are all made to look smart by one person in America - Fed Chair Powell. Market wobbles when we have doubts in our beliefs.
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Buying high and selling low is a commonly employed strategy of these folk
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