• 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.