Pain from loss vs. happiness from gain

Discussion in 'Psychology' started by bidask, Jan 28, 2009.

  1. bidask


    My pain per dollar loss seems to be greater than the happiness per dollar gain.

    For example, I feel more pain from losing $1 than the happiness I feel from making $1.

    Do you all feel this way too?
  2. that is true for me sometimes.

    like today i have a position it's going my way. maybe i have a small position(1k) that's why or it's not up alot.

    but having pain losing is a good thing, just make sure you cut that pain so it doesnt turn into a big pain.
  3. I think most people feel this way.
  4. frozzor


    it's called declining marginal utility of income
  5. bidask


    clarification: i'm talking about realized gains and losses.

    on unrealized gains and losses, i don't think i have a stronger feeling one way or the other. i think this is because i "know" that it's the eventual realized numbers that will matter.

  6. I think that's something different. Related, perhaps, but different.
  7. farjeon


    and money lost quickly hurts more than money lost slowly
  8. The most important thing in trading, is to minimize losses. So your pain is a good thing.
  9. Redneck



    I really don’t care about gains or losses - they neither make me happy or sad

    What I do care about is following my rules

    And nothing PISSES me off more than to make, or lose - money and not have followed my rules

    I use to have a problem with this – until I started punishing myself every time I broke a rule – no matter a win or a loss

    Take Care
  10. My pain/joy ratio is about 10-1.

    Nasty. But it keeps me honest.
    #10     Jan 29, 2009