Graeme Newell
  • graeme speaking
  • decision science
  • best practices
  • book
  • blogs
  • about
  • contact
Graeme Newell
  • graeme speaking
  • decision science
  • best practices
  • book
  • blogs
  • about
  • contact
  • Survivorship Bias

    • April 10, 2022
    • Posted by: Theodemae Maliza
    • Category: Blogs
    No Comments

    Why is it that decades later, you can flawlessly sing every single word of Bohemian Rhapsody, yet completely forget the three items on your grocery list? Songs stimulate multiple senses.

    read more
  • Duration Neglect

    • April 10, 2022
    • Posted by: Theodemae Maliza
    • Category: Blogs
    No Comments

    Why is it that decades later, you can flawlessly sing every single word of Bohemian Rhapsody, yet completely forget the three items on your grocery list? Songs stimulate multiple senses.

    read more
  • Omission Bias

    • April 10, 2022
    • Posted by: Theodemae Maliza
    • Category: Blogs
    No Comments

    Why is it that decades later, you can flawlessly sing every single word of Bohemian Rhapsody, yet completely forget the three items on your grocery list? Songs stimulate multiple senses.

    read more
  • Normalcy bias

    • April 10, 2022
    • Posted by: Theodemae Maliza
    • Category: Blogs
    No Comments

    Why is it that decades later, you can flawlessly sing every single word of Bohemian Rhapsody, yet completely forget the three items on your grocery list? Songs stimulate multiple senses.

    read more
  • Ostrich Effect

    • April 10, 2022
    • Posted by: Theodemae Maliza
    • Category: Blogs
    No Comments

    Why is it that decades later, you can flawlessly sing every single word of Bohemian Rhapsody, yet completely forget the three items on your grocery list? Songs stimulate multiple senses.

    read more
  • Neglect of probability

    • April 10, 2022
    • Posted by: Theodemae Maliza
    • Category: Blogs
    No Comments

    Why is it that decades later, you can flawlessly sing every single word of Bohemian Rhapsody, yet completely forget the three items on your grocery list? Songs stimulate multiple senses.

    read more
  • Moral Licensing Effect

    • April 10, 2022
    • Posted by: Theodemae Maliza
    • Category: Blogs
    No Comments

    Why is it that decades later, you can flawlessly sing every single word of Bohemian Rhapsody, yet completely forget the three items on your grocery list? Songs stimulate multiple senses.

    read more
  • Money Illusion

    • April 10, 2022
    • Posted by: Theodemae Maliza
    • Category: Blogs
    No Comments

    Why is it that decades later, you can flawlessly sing every single word of Bohemian Rhapsody, yet completely forget the three items on your grocery list? Songs stimulate multiple senses.

    read more
  • Mere Exposure Effect

    • April 10, 2022
    • Posted by: Theodemae Maliza
    • Category: Blogs
    No Comments

    Why is it that decades later, you can flawlessly sing every single word of Bohemian Rhapsody, yet completely forget the three items on your grocery list? Songs stimulate multiple senses.

    read more
  • Loss aversion

    • April 9, 2022
    • Posted by: Theodemae Maliza
    • Category: Blogs
    No Comments

    Why is it that decades later, you can flawlessly sing every single word of Bohemian Rhapsody, yet completely forget the three items on your grocery list? Songs stimulate multiple senses.

    read more
  • 1
  • 2
  • 3
  • …
  • 8

Loss Aversion

Loss aversion is our brain’s pesky tendency to prefer avoiding a loss vs making equivalent gains. Simply put, winning $100 is nice, but losing $100 is catastrophic.

In our day-to-day lives, loss aversion shows up most prominently in the world of finance. People are less likely to invest in a stock if it is perceived as risky, with a chance for a loss, even though the reward potential is high. And unfortunately, loss aversion gets more powerful the larger the stakes.

For sure, none of us want to lose, but the fear of experiencing that loss keeps us from taking even well-calculated risks. Even when the odds are dramatically in our favor, the thought of a possible loss saps our courage.

How can you beat loss aversion? Ask yourself, “what’s the worst outcome if I make this move?” Oftentimes, this little step gives us a nice little manageable taste of the feelings we might experience if we lose. This makes the potential loss seem a little less scary and bolsters our courage.

Let Graeme customize a presentation for your online or in-person event

contact graeme
Graeme Newell

Graeme Newell is a professional speaker and behavioral finance researcher. He uses brain science insights to empower leaders to make better business decisions.

favorites

  • best practices
  • latest book
  • speaking and webinars
  • decision science

contact info

Contact us today via phone or email.

Graeme Newell
(919) 280-8224
gnewell@602communications.com
Portland, Oregon USA

Copyright © 2021 Graeme Newell | Dev T7