Author: Daniel Richards

I am a Lecturer at RMIT University in the School of Accounting. I research investor decision making and the ins-and-outs of giving financial advice. His work has been published work in the European Journal of Finance and Journal of Economic Psychology. When not doing research, he teaches financial advice to the new wave of Financial Planners entering the Australian work force. When not researching or teaching, he is running around after his twins and trying to make palatable home-made beer.

On holding losers and selling winners: our emotional brains and the disposition effects

Daniel Richards1 Comment

I am delighted to introduce a guest blog by Dr Daniel Richards about some research we collaborated on. The disposition effect describes a bias that causes investors to be more willing to sell investments that have risen in in value than those that have fallen in value. Our research shows that investors who rely less on emotions and intuition and investors who manage their emotions more effectively are less likely to show this investment bias.