Ep77: Loss Aversion
The Trading Psychology Podcast
00:00
Understanding Loss Aversion in Trading
This chapter explores the psychological concept of loss aversion and its impact on trading behaviors, emphasizing how emotions and cognitive biases shape investment decisions. The discussion contrasts the tendency to hold onto losing trades out of fear with the more accepted realization of gains. It also encourages traders to adopt a more objective approach by focusing on terms like 'overbought' and 'oversold' instead of 'cheap' and 'expensive', promoting a shift in mindset for better decision-making.
Transcript
Play full episode
