The disposition effect is a well-known phenomenon in behavioral finance, which describes how investors tend to sell assets that have increased in value, while holding onto assets that have decreased in value. Hersh Shefrin and Meir Statman discovered and named this effect in their 1985 paper, which found that people dislike losing significantly more than they enjoy winning. This article will explore the disposition effect in detail, including its definition, causes, examples, and implications for investors. Read More