Loss aversion: Why do you always rush to sell winning trades, but stubbornly hold onto losing ones?


📈 You’ve just made a little profit—after a slight pullback, you quickly close the position, afraid the gains will fly away.
📉 When you lose money, and price breaks below the support level, you don’t run—instead you hold on tightly, expecting a miracle to happen.
That’s a human weakness: loss aversion. With the same amount lost, the pain is 2.5 times the joy brought by profits.
How to overcome it?
1️⃣ Move the stop-loss: After your profit exceeds a certain percentage, move your stop-loss up to above the entry price. Then you’ll never be in a losing position, and your mindset will naturally stabilize.
2️⃣ Take profit in batches: Don’t always try to sell at the absolute top. Close half first, and let the remaining position run.
3️⃣ Accept “imperfect”: Don’t aim to sell at the highest point. As long as the trade fits your system, even if you make a little less, it’s still a successful trade.
💡 Today’s quote: Those who know how to buy become apprentices; those who know how to sell become masters. Only by overcoming loss aversion can you become a master.$BTC $ETH
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GateUser-8da82d63
· 36m ago
Taking profit in batches +1. I used to always want to sell at the very top, but now I’ve learned to take half off the table first, and then just watch what the rest of the position does—turns out I actually made more.
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SweepTheFloor
· 1h ago
Loss aversion really is written into our genes—sure, you know it, but when you put it into practice, your hands still don’t listen; you need to practice more.
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Lightning-FastComposure
· 1h ago
This move of moving the stop loss is really useful. I’m currently up 20%, so I move the stop loss to the entry cost, and my mindset instantly stays steady like an old dog.
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GateUser-7919e6b9
· 2h ago
You’re absolutely right. Last time I locked in profits of 10% and rushed to get out—then it went up another 50%. But the losing trades are trapped and have been held for three months without cutting them yet [facepalm]
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雾里看TVL
· 2h ago
Those who buy are apprentices; those who sell are masters—I printed this phrase and pinned it to my screen. Every time I feel like holding the bag, I glance at it once.
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