Emotional Risk #1

Emotional Risks in Long-Term Equity Investing

In equity investing, your emotional response can be more critical than the market’s actual movements.

#1 Emotional Risk

Market losses are felt much more deeply than gains.
For example, a 30% gain might seem expected, but a 30% loss can feel devastating, making you worry about things like retirement or your family’s future.

This is because we unconsciously give more emotional weight to losses than to gains, even when they are the same percentage.