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This is known as loss aversion. That's because people tend to view the possibility of recouping a loss as more important than the possibility of greater gain. The priority of avoiding losses shamrock finance holds true for investors.

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The herd shamrock finance explains why people tend to imitate others. When a market is moving up or down, investors are subject to a fear that fiinance know more or have more information. As a consequence, investors feel a strong impulse to do what others are doing.