Scientific Definition
Selling winners too early and holding losers too long.
Plain-English Definition
Selling winners too early and holding losers too long.
Feynman Explanation
Realize gains; defer the pain.
Core Principle
Selling winners too early and holding losers too long.
Mechanisms
Pending editorial review.
Selling winners too early and holding losers too long.
Pending editorial review.
Pending editorial review.
Pending editorial review.
Pending editorial review.
Project portfolios suffer the same pattern as stock portfolios.
Inputs (Triggers)
Pending editorial review.
Outputs (Behaviors)
Pending editorial review.
Behavioral Signature
Realize gains; defer the pain.
Examples
- Investors who lock in 10% gains and ride 50% losses to zero.
- Project portfolios suffer the same pattern as stock portfolios.
Pending editorial review.
Famous Experiments
Pending editorial review.
Design Principles
- Apply equal-rigor stop-loss discipline to winners and losers.
Measurement Approaches
Pending editorial review.
Evidence
Pending editorial review.
Pending editorial review.
The Perverse Incentive Lens™
How this behavior is exploited — and how to redesign around it.
- Apply equal-rigor stop-loss discipline to winners and losers.
Pending editorial review.
Pending editorial review.
Interactive Mini Network
Click any neighbor to re-center the graph and follow the threads of connection.
Knowledge Graph Neighbors
Auto-linked to the rest of the Human Behavior Taxonomy by family, domain, dimension, and shared keywords.
A color appears different depending on adjacent colors.
The ability to focus on one voice in a noisy environment.
Evaluations are warped by what came immediately before.
We spend less when holding large bills than small ones — same money, different behavior.
One new possession spirals into a cascade of complementary purchases.
We overweight one aspect of an event when predicting its impact.
One negative trait taints judgment of everything else about a person or company.
Evaluated separately, the smaller-but-complete option beats the larger-but-flawed one.
Goals become the focus, sometimes at the expense of the underlying purpose.
'Free' is a different psychological category — disproportionately attractive.
How will I feel about this in 10 minutes / 10 months / 10 years?
Inattention or forgetfulness caused by low attention, hyperfocus, or distraction.