Is the difference that loss aversion is just aversion to any kind of loss and a hesitancy to take part, whereas myopic loss aversion is following the trends in the market (buying high and selling low)?
Loss aversion is a generic phrase for what every investor exhibits - you’d rather not lose money, all else equal. Myopic loss aversion is concerning oneself more with short-term losses than with the “big picture” of a long-term planning strategy, which will have periods of loss(es).
Another way to say it would be that myopic loss aversion makes investors more conservative than their risk profile would warrant. I totally just made that wording up, but I actually kinda like it.
Myopia - a vision condition. Those with myopia see near objects clearly but far away objects appear blurred.
wow, you actually learn real world stuff with the CFA.
Myopic loss aversion is the combination of a greater sensitivity to losses than to gains and a tendency of people to evaluate outcomes more frequently even if they have long-term investment goals.
Myopic loss aversion occurs when the shorter term risk of stocks incorrectly leads to an excessively high equity risk premiums in the market.
whats diff b/w loss and regret version vs disposition effetc?
If we keep holding falling stock whic bias is this