When fear decides for you

Loss aversion in action: two sides of the trap

How loss aversion shows up in real life

So now you get the theory. Loss aversion messes with your brain.

But what does that actually look like when it hits?

Let’s look at two very real reactions to going red.

Totally different choices. Same emotional glitch.

Bearry was confident in his pick.

Solid company. Good outlook. No bad news.

But one morning, the stock was down 12%.

Just red. Everywhere. He opened TikTok. Panic.

“Get out before it crashes more.”

“Cut your losses, don’t wait.”

His stomach tightened. He sold.

Not because the company changed. But because the feeling did.

Three weeks later, the stock rebounded 18%.

And Bearry was still sitting in cash.

Not richer. Just rattled.

Now, he’s got a rule:

No panic moves. If he feels fear, he waits 48 hours before making a call.

That pause is enough to get his logic back online.

Toroshi had the opposite issue.

He bought into a hyped biotech stock. Then came the delays. The layoffs. The silence.

It dropped 40%.

He didn’t believe in it anymore. But he couldn’t bring himself to sell. Why?

Because that would mean admitting the loss.

Every day, he opened his portfolio and saw red. And every day, he thought:

“If I just wait a little longer...”

But he wasn’t investing. He was avoiding discomfort. Until one question cut through the noise:

Would I buy this today?

Nope.

So he sold. And instantly felt lighter. Not because he made the money back.

But because he took control back.

Name it, then check it. Spot the fear, then verify thesis, news, and numbers before you act.
48-hour rule. If you feel panic or FOMO, wait 48 hours and reassess with a clear head.
Would I buy this today. If the answer is no, exit by plan, not by hope.

You’ve seen how fear can push you out or keep you stuck.

Now test if you can catch that moment before it costs you.

Next, we face the ego. Overconfidence and regret show how wins and losses quietly sabotage your strategy.

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