Sentimental Value

Sentimental value refers to the emotional significance attached to an asset or investment that goes beyond its financial worth. In the context of trading or investing, sentimental value may lead investors to hold onto certain assets despite market conditions or performance because of personal attachments or memories. While it is natural to assign sentimental value to some assets, it can cloud judgment and lead to irrational investment decisions.

Example

An investor may refuse to sell stock in a company that was their first investment, even though its market performance is declining, because of the sentimental attachment they have to it.