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Why losses hurt more than gains feel good

5 min read 2 Jul 2024

A loss stings about twice as much as an equal gain delights — and that asymmetry quietly drives bad timing.

Loss aversion is one of the most reliable findings in behavioural finance. Knowing it exists is the first defence: it's why people sell in panic and hold losers too long.

Key takeaway

Losses shout, gains whisper.Knowing that is half the defence.