Search results

Kenneth it very accurately predicts what people do in their real lives. I struggle with this bias almost every trading day, in fact I'm struggling now (must resist.. taking profits..) :) One individual might be an exception but take a large sample and the truer it will become. Edit ...

Some links: Wikapedia - Loss Aversion Cognitive Biases - Wikapedia Money and utility

This is a well known bias Traders have to deal with. Humans are risk adverse concerning profits and risk seeking regarding loss, exactly the wrong behaviour to have with trading. I have posted some thoughts about this idea to my trading blog: Who wants to be a millionaire? The...