Comment Re:Simple solution.... (Score 1) 521
It is discussed in Kahneman's prospect theory. Shefrin Statman (1985) and Odean (1998) found that investors have a strong preference to hold on to stocks that are selling below purchase price, so that they will avoid becoming "losers", and to sell stocks that are selling above the purchase price, so that they will come out as "winners". The taxation is also an influencing factor here. In prospect theory these people are called selling winners and keeping losers.