Loss Aversion is Real
We feel the pain of loss twice as strongly as we feel the joy of gain. This influences everything from investing to decision-making in relationships.
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Thinking, Fast and Slow by Daniel Kahneman explores how we think using two systems: one fast and intuitive, the other slow and logical. It reveals how biases shape our decisions—and how understanding them helps us think smarter.
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Similar ideas to Loss Aversion is Real
Loss Aversion
Losing something we already have is twice as much pain than gaining the same. This skewed feelings towards loss is known as loss aversion.
Expectations always dampen the feelings of happiness, always setting us up in advance for a dose of disappointment.
A Lesson in Loss Aversion
Sometimes, it is hard to let go of something valuable without realizing that letting go is greater than we think.
Sometimes, a loss can feel more powerful than a gain of the same magnitude and vice versa. Considering the pain of a loss – or euphoria of a gain – can weigh heavily on futu...
Conquer Your Loss Aversion
- Be aware that risk is needed to make any gain in investments. Start with low-risk opportunities and work your way up to riskier investments.
- Work on controlling your emotional reaction to situations. Learn to deal with losses calmly, and don't let it affect your decision ...
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