Why you sell your winners and hold your losers
You sell a stock the moment it is up 10%, locking in a small win — but you keep a losing position for years, telling yourself it will “come back.” You are not being irrational by accident. You are running a 200,000-year-old survival program inside a modern brokerage account.
The 2:1 rule: Decades of research show that a loss feels roughly twice as painful as an equivalent gain feels good. So your brain works overtime to avoid realising losses — even when cutting them is the smart move.
Our free guide shows you, in about 10 minutes, how loss aversion shows up in real money decisions, why it costs the average investor 3–4% a year, and three concrete habits that defuse it — without turning you into a cold-blooded robot.
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The pattern
How to spot loss aversion in your own decisions
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The cause
The wiring behind it — in plain language
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The fix
Three habits that quietly protect your returns
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“Tax” in our name refers to the hidden cost of cognitive biases — not to fiscal taxes. Nothing on this website constitutes tax, investment, or financial advice. For tax matters, consult a qualified tax professional. For investment decisions, do your own research and speak to a licensed advisor.