12. Loss Aversion: - Deepstash
12. Loss Aversion:

12. Loss Aversion:

We fear losing what we have more than we desire gaining something new. You might refuse to sell a losing stock because you don't want to accept the loss, even if it's a wise financial decision.

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alexbene

Being an ambivert person, I am too much fond of reading, and always eager to learn.

These cognitive biases and mind traps influence decision-making, perception, and behavior in various aspects of our lives. Recognizing them can help us make more rational and informed choices.

Similar ideas to 12. Loss Aversion:

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.

Be aware of loss aversion

Loss aversion refers to the fact that we feel stronger emotions about losing something than we do about gaining the same thing.

For example: If you found $20 on the ground, you'd be pretty happy. But if you had $20 in your wallet and lost it, you'd be really unhappy.

13. Endowment Effect:

13. Endowment Effect:

People tend to overvalue items simply because they own them. If someone offers you less money for a used item than you think it's worth, you might refuse to sell it because you value it more due to ownership.

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