I have recently been thinking about the psychology of trading crypto. I personally have noticed that I take my losses harder than I seen to enjoy my gains.
I did a bit of research and it turns out this has been looked into quite a bit. In 1979 some fellas called Kahneman and Tversky made the observation that:
βthe aggravation that one experiences in losing a sum of money appears to be greater than the pleasure associated with gaining the same amountβ.
This was later coined negativity bias.
Has anyone here also noted this and considered how it affects their trading behaviour? For me it has provided caution but I can see that it may push people to try and reach for riskier, larger gains to offset loss aggravation.
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