![]() ![]() People always ask Google “why is stock X falling,” but never “why is stock X rising.” That’s loss aversion on display, and we’re not immune to it. And that’s precisely what’s been happening with TeamViewer AG ( TMV.DE). That’s not a bad thing, but it feels bad, especially if the stock keeps sliding slowly over time in a dramatic fashion. While we can’t explain why, as investors, we all know that this now “feels better.” When a stock keeps falling and falling, there’s a temptation to keep buying and buying. Put as much capital into the stock as your original purchase, and the loss decreases to -15%. If a stock you’re holding drops -30%, here’s how to make some of that pain go away. This is referred to as loss aversion, and it wreaks havoc when managing a portfolio. Studies show that the pain of losing is psychologically twice as powerful as the pleasure of gaining.
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