[The Real Cause of “Small Gains, Big Losses”] Easily Understanding Loss Aversion in Trading with Prospect Theory
“Even though you slowly stack up profits, one big loss at the end wipes everything out…” There are a huge number of traders struggling with this kind of “small gains, big losses” pattern. The truth is, Human decision-making is wired with a built-in strong fear of losses, and that psychology has a huge impact on…



