Stocks & Commodities V. 33:04 (62, 61): Loss Aversion by Stella Osoba

Stocks & Commodities V. 33:04 (62, 61): Loss Aversion by Stella Osoba
Item# V33C04_980OSOB
$2.95
Availability: In Stock

Product Description

Loss Aversion by Stella Osoba

Debug Yourself

By nature, we are wired to act in certain ways when confronted with specific situations. Being aware of these types of behavioral patterns is a first step toward conquering them. Here’s a look at how we typically react to situations that arise in the financial markets.

We dislike losses far more than we like gains. This is a cognitive bias known as loss aversion. Understanding this bias and how it manifests itself in our trading decisions can help to offset some of the more harmful decisions we are likely to make as traders. Loss aversion can lead to the unfortunate behavior known as the disposition effect, where we sell our winners too soon and hold onto our losers for too long.

Studies have shown that the psychological pain caused by losses far exceeds the pleasure of a gain. This is a natural tendency of our wiring as humans. In the wild, primitive man had to be able to deal with threatening situations with far more urgency than opportunity.




FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.




Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order