The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to be talking about the endowment effect and why it cripples investors. My understanding and belief in these different psychological effects or barriers that we have to our potential to be great traders is that we can't overcome these necessarily. But the more that we understand them, the greater the possibility that we have an opportunity to recognize when we are being manipulated by some degree to these different psychological barriers or effects that happen in our mind. And so, this is not to say that we can overcome these by any stretch because it’ll always potentially happen to us, but again, it’s the understanding and the recognition of them I think that will enable us to make potentially better decisions or smarter trades. The endowment effect is a really interesting one and I see this all the time and you’ve probably felt this before and now, retroactively, you might go back and think to your