Emotions is the dominant factor for the average investor, instead of staying invested for the long run, they tend to buy high and sell low.

Humans tend to have unwarranted confidence in their decision making and an inflated view of their own abilities.

Investors are more sensitive to loss than to risk and return. People weigh losses twice as heavy as potential gains.

Algorithmic trading eliminates human emotions that prevent investors’ in holding losses for a longer time and selling profitable securities too early