Loss Aversion: A Mental Trap Every Trader Needs to Know

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Traders,

Check out this 2-minute video on Loss Aversion attached below.

Loss Aversion is one of the mental traps that even the best traders fall victim to. Daniel Kahneman and his associate Amos Tversky won the Nobel Prize for identifying it.

In short, Loss Aversion is the tendency for people to irrationally risk more money (“double down”) in order to avoid a loss. The [bad] feeling of a loss is physiologically more powerful than the [good] feeling of an equivalent gain.

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Thank you for watching, and safe trading,

#JK – ChartWizardsNFT

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