Anchoring
Also called: anchoring bias
Relying too heavily on a first number, such as the price you paid for a share, when making later decisions.
Investors often hold losing shares until they return to the purchase price, or judge value against an old high. The market does not know what you paid. The useful question is whether you would buy the share at today's price.
Learn more in these lessons
- Monitoring an investment thesisWhat should you keep checking after you have bought a share?
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