Demo account. Look around everything, with sample data. Nothing here can be changed.Exit tourSign up free
Psychology
Why losses hurt about twice as much as gains feel good, and how that makes traders cut winners and hold losers.
Kahneman and Tversky's prospect theory (1979) found that people feel a loss roughly twice as strongly as a gain of the same size. In trading this shows up as the disposition effect, described by Shefrin and Statman in 1985: selling winners too early to lock in the good feeling, and holding losers too long to avoid admitting the loss.
The result is small wins and big losses: the opposite of what most strategies need.
Put it into practice: Track it trade by trade in UNFLD's trading journal →
For education only, not financial advice.