What is loss aversion when it comes to finance?

[Good-Person]

Loss aversion refers to a psychological feeling and it is found in many people. There are many people who may suffer from financial losses and they may never enjoy earning profits. This feeling is referred to loss aversion in simple terms and it has a lot to do with investor's psychology. So, have you also experienced this thing?

 

[Heatman]

I have never seen anyone who's happy whenever they lose money especially when they invested it in a business or any other kind of investment to make money from. I have had my own fair share of being depressed over losing a big amount of money in a wrong investment. It took me years to get over it.