Have you ever held on too long to a winning position? You watch as that former top performer in your portfolio slows down, and then rotates lower, and then really begins to deteriorate, and you just watch it all happen without taking action? If the answer is “yes”, then you have fallen victim to one of the more frustrating of the behavioral biases called “endowment bias”. Basically, we feel unable to let go of this position because of our emotional attachment, and we hold on to a losing position despite very clear technical signs that we should do otherwise! Today I’ll share three technical analysis techniques that I’ve found helpful to cut my losses, minimize the crippling impact of endowment bias, and preserve my portfolio through challenging periods. When in Doubt, Follow the Trend The biggest issue I find when it comes to endowment bias is that investors simply ignore clear signs…
