In love, when you are in a relationship with someone for too long, when you run out of feelings, feel very uncomfortable or feel constrained and pressured, really want to break up but the result is still staying... And in investment, even though there are losses, you still do not cut and continue to pump capital into investment. Have you ever thought about why that is? In this article, I will answer some of those questions for you.

Endowment Effect - This is a phenomenon when investors value their assets more than their real market value, just because they own them. This leads to them not wanting to sell or take profits in time, even when the asset has reached its fair value or is decreasing in price, making them more likely to suffer losses or miss out on better investment opportunities.

Some manifestations of attachment to investment assets:

Reluctance to sell when necessary: ​​Investors often find it difficult to cut losses when an asset falls in value because they hope that it will recover. They hold on to assets for too long even though the assets may no longer have long-term investment value.

Overvaluing assets simply because they own them: When investors are too attached to an asset, they tend to perceive it as being worth more than it actually is, leading to decisions to hold onto it even when there is a reasonable opportunity to take profit.

Unrealistic expectations of an asset class even though it is unlikely to grow or even lose money.

===>Low investment performance, high risk of loss, unbalanced portfolios

How to get out of this mentality?

-> define clear goals, set targets, determine when to cut profits and losses to achieve the target you set.

-> Diversify investment categories, if you don't have knowledge, take the initiative to learn, refer to articles to collect knowledge for yourself.

-> Periodically restructure, this helps investors re-evaluate investments and adjust their portfolios to achieve higher performance/interest rates, avoiding clinging to assets that are no longer suitable at the time.

*** If you have any questions, comments for the article or have difficulties in investing or psychology, you can contact me. I will leave the information on my personal page!