and a clear strategy to guide the decision-making process.
Stick to the Plan: Avoid making impulsive decisions and stick to the established betting plan, ignoring emotional triggers.
Use Stop Loss: Establish predetermined loss limits to prevent over-investment in losing bets.
Take Profit Levels: Set target profit levels to automatically cash out winning bets, ensuring that small gains are not sold prematurely.
Monitor Performance: Regularly evaluate betting performance and make adjustments as necessary based on objective analysis.
In conclusion, the disposition effect is a pervasive cognitive bias that significantly impacts the decision-making processes of both investors and bettors. Understanding and identifying this bias is crucial for improving investment and betting strategies, as well as for promoting responsible gambling practices. By recognising and mitigating the effects of the disposition effect, individuals can make more informed and rational decisions in their financial ventures, ultimately leading to better long-term outcomes.