The Brain Mechanism That Prevents Cutting Losses in Investing【For People Who Cannot Cut Losses】Part1 'FX, Stocks, Futures'

Unable to cut losses in investingThe brain’s mechanism

I understand that cutting losses is important, but for those who can’t do it A survey of individual investors by Nikkei Money magazine One of the results that comes out every year Highly performing investors have “loss-cutting rules and they execute them reliably” Words from people who carried large unrealized losses “Has anyone else experienced this? Even though you know it in your head when you have a loss, you don’t always take the right action.” This is caused by fear, which makes the animal brain dominant, lowers IQ, and prevents correct actions One of the brains—human brain or animal brain—becomes dominant When emotions such as anxiety, fear, and anger arise, the animal brain tends to dominate In those moments, the human brain functions less In other words, the logical brain does not operate, and冷静 judgments and correct actions cannot be taken Therefore, it’s natural to think that when unrealized losses grow and fear is triggered, you cannot make calm judgments or take correct actions, considering how the brain works “Cut losses quickly. People say holding on that long is bad, but when you only see the current minus and red numbers, you can’t think normally. I understand, but I can’t do it.”

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