What Are the Negative Impacts of Fear of Loss on Investors?

[Suba]

Fear of losing refers to an investor's excessive fear of losses that have not yet occurred, especially when they are about to invest. Fear of losing is also often referred to as loss aversion, which often makes it difficult for novice investors to start investing and make decisions. Fear of losing is often triggered by stories of others who have suffered significant losses, leaving them traumatized. They never understand or learn market mechanisms, and they only rely on investment instruments with no risk and 100% guaranteed profits.

So, in your opinion, what are the negative impacts of a novice investor having a fear of losing?

 

[neku]

Some investors panic and sell early fearing a loss, when they could have made a profit if they were patient and waited for some time, especially for crypto.

 

[eLdavis]

For most investors, fear of loss often stops them from trying new opportunities, or taking some level of risk.