Sean Pyles

This, my people, is an example of heartbreak.

The company doesn't seem to be on a path towards a high stock price, but you just can't get yourself to sell the stock because the idea of selling it at a loss just breaks your heart too much.

And that last part that you mentioned, Elizabeth, is the irrational bias of loss aversion.

We all know it's ideal to buy low and sell high, but it's also really important to cut your losses when you can.

And here's the twist when it comes to loss aversion.

Selling your stocks at a loss can be a really smart financial move because when you sell your stocks at a loss, that can help you offset your gains through a little something called tax loss harvesting.

Consult your CPA if you want to hear more about that.

So everyone, it's important to know when to let go of your loser stocks.

Just really quickly, Sean, I'm curious, have you ever done tax loss harvesting yourself?

I have.

Well, I had a CPA do it for me because I didn't feel like doing all the math involved, but it helped me offset my tax bill for sure.

Okay.

I need to look into that next year.

All right.

Herd mentality.

Let's give you an example of that, guys.

Now, think about the hype cycles that people get swept up into in the finance world.

We saw this with the GameStop saga a few years back.

Remember that, Sean?

Oh, yes.