How to overcome loss aversion

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Euler
Posts: 24813
Joined: Wed Nov 10, 2010 1:39 pm
Location: Bet Angel HQ

I think reframing your losses will help. If you lose think of it as another step to the win or further away from your next loss.

I remember reading somewhere about how a company would get encourage cold calling by telling the sales people that if they had a 1/10 strike rate then every rejection would get them closer to a sale, so get on those phones.

While trading is a little different, I think the principle of overcoming a fear is probably similar.
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