Skip to content
← From Zero
← From Zero
Season 7 · Your brain on money · 7.1

Losing €100 hurts twice as much as gaining €100 feels good

−€100hurts2×more than+€100feels good
What it is

Loss aversion is feeling a loss more strongly than an equal-sized gain. Losing €100 hurts roughly twice as much as gaining €100 feels good, for most people.

Sell what rose, too earlyHold losers too long
Why it matters

This imbalance pushes people to sell what has risen too early, to lock in the good feeling, and hold losers too long, to avoid feeling the loss. Both usually hurt the long-term result.

POSSIBLE GAIN+€150POSSIBLE LOSS−€100
The numbers

A coin flip paying +€150 or −€100 is a good bet on average, yet many people refuse it, because the possible loss feels heavier than the larger possible gain.

Deciding in the momentFeelings, not a plan
The trap

Deciding when to sell in the moment, driven by how a loss feels right then, usually produces worse results than a rule set in advance, while calm.

Before you buyWrite your sell point now
Where you see it

Before buying, write down when you'd sell, in both directions. Deciding now, calmly, beats deciding later, while the loss is actually hurting.

Try it
Episode done · saved to your path