Trading Skills| Loss aversion
Hello evveryone! Today i want to share some tradint Skills with you!
1.
$Apple(AAPL)$ $Amazon.com(AMZN)$ 20-Year Returns: Monster eats Apple & Amazon for breakfast!
2.
Incentives
Incentives are anything that persuades a person to alter their behavior in a desired manner.
This mental model is essential for investors to understand.
“Show me the incentive, and I'll show you the outcome.”
- Charlie Munger
3.
Loss aversion
Investors are much more sensitive to losses than to gains.
A 50% loss will feel 3x more painful, than the joy felt from a 50% gain.
By understanding this emotional effect, we can make better decisions regardless of how we feel.
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https://x.com/InvestInAssets
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