Week 34 Day 1: Loss Aversion: The 2:1 Pain Ratio

Losing $100 feels about twice as painful as gaining $100 feels good. This asymmetry -- called loss aversion -- is hardwired into human psychology and explains most of the behavioral mistakes investors...

Losing $100 feels about twice as painful as gaining $100 feels good. This asymmetry -- called loss aversion -- is hardwired into human psychology and explains most of the behavioral mistakes investors make.