Losers, Winners and Biased Trades

  title={Losers, Winners and Biased Trades},
  author={Gerard J. Tellis and Deborah J. MacInnis and Joseph M. Johnson},
  journal={FEN: Behavioral Finance (Topic)},
When faced with sequential information, consumers tend to fall prey to one of two well-known heuristics: the hot (or cold) hand and the gambler's fallacy. The authors relate these two traditionally separate heuristics to differences in accepting (buy) versus rejecting (sell) decisions. They identify trend length as a contextual moderating variable and show an asymmetry between buying and selling frames. When applied to a stock market context, a consistent finding is that consumers prefer to buy… 
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