This always seemed irrational to me, but apparently it’s a known bias.
Losses hit harder than gains.
It explains stuff like:
– holding losing stocks too long
– not taking opportunities
– sticking with bad choices just to avoid “locking in” a loss
I came across a breakdown with examples and it kind of changed how I look at decisions.
Does this match your experience?
Gain or lose ? what hurts more
byu/DifficultScratch3241 ininvesting
Posted by DifficultScratch3241