How to Fight Loss Aversion:- Diversify Your Investment

• How to Fight Loss Aversion:- Diversify Your Investment The better-diversified portfolio will ease the psychological blow of market moves. By investing in the widest possible spread of different asset classes (stocks, bonds, real estate, and others), individuals can further minimize the chance of sustaining huge losses in any individual area. Focus on Long-Term Goals: You can also help alleviate short-term fears about market fluctuations by reminding yourself that retirement is a long-term objective. You can keep your focus on long-term goals by regularly reviewing your retirement plan and performance, rather than reacting emotionally to temporary market movements. c. Overconfidence Bias:- Overestimation of One\'s Knowledge or Abilities Overconfidence bias refers to the psychological effect where one overestimates his or her ability to predict outcomes or even his or her level of expertise in a given area. In retirement planning, overconfidence can cause excessive