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1586 terms

Glossary

Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.

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Myopic loss aversion

Risk & psychology

The tendency to hold less of a volatile asset than a long horizon warrants, because the asset is being evaluated over intervals far shorter than that horizon.

In plain terms

Not weakness. Expected return accumulates with time while the scatter grows only with its square root, so at a daily interval nearly half of all observations are losses — and acting on a series like that is a reasonable response to the series.

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Indian stock market glossary · Market Vidyalaya