Most retail investors fail to make good returns on their investments due to emotional or cognitive biases. When we buy a stock at a certain price, our mind gets anchored to that price and if the price goes up, we find it difficult to buy more of the stock at higher prices despite the company having a great future prospect.
Conversely when the price falls, we tend to average the stock and /or not sell even if the fundamentals have crashed and believe we are getting it at a big discount.
