Loss Aversion vs Mental Stop
Quick comparison to help you distinguish these two crypto terms.
Loss Aversion
intermediate
psychology
A cognitive bias in which the psychological pain of losing a given amount of money is experienced as approximately twice as powerful as the pleasure of gaining the equivalent amount.
Read full definitionMental Stop
intermediate
psychology
An intended exit price held only in a trader's mind without a corresponding exchange order placed, relying entirely on the trader's willingness to act manually when that price level is reached.
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