Loss Aversion vs Revenge Trading

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.

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Revenge Trading
intermediate
psychology

The impulsive act of entering new trades immediately after a loss with the primary motivation of recovering that loss quickly, driven by frustration and emotion rather than strategy or market analysis.

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