The Psychological Dynamics of Loss
The Psychological Dynamics of Loss
This chapter discusses lessons about market loss that the author derived from his experience of losing his parents, and having a huge debt. The author realized that market losses per se do not bother any trader since they expect that any market negotiation will entail losses regardless of the type of business venture. Likewise, unexpected losses and losing on balance, most of the time overwhelm any trader. Thus, acknowledging that losses are part of business is one thing; taking and accepting those losses in the markets is something else entirely. In relation to realization, the author argues that people involved in the markets tend to have difficulty actively accepting and controlling losses since they treat all losses as failure, and that they interchange concept of profit and loss with the concept of win and lose.
Keywords: market loss, market, profit, loss, trader
Columbia Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.
Please, subscribe or login to access full text content.
If you think you should have access to this title, please contact your librarian.
To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us .
