Decoded Intelligence Signal
Loss Aversion
beginner
fundamentals
Verified: May 26, 2026Lexicon Core Definition
The behavioural tendency to experience the pain of losses approximately twice as intensely as equivalent gains — leading to disproportionate fear of drawdowns and increased likelihood of premature selling during corrections.
Analysis Breakdown
The behavioural tendency to experience the pain of losses approximately twice as intensely as equivalent gains — leading to disproportionate fear of drawdowns and increased likelihood of premature selling during corrections. Full explanation coming soon when Journey 6 content is ingested.