Should Financial Loss Be Avoided at All Costs?

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In this episode, we talk about reframing your relationship with financial loss so that it doesn’t negatively impact your confidence or future investing success. 

We also discuss the importance of mastering the art of comeback, the psychological impact of loss aversion, and why avoiding financial loss at all costs can be a misleading strategy. 

Enjoy the episode!


00:00 – Intro

03:22 – How People React to Loss and Impact on Decision-Making

04:41 – Warren Buffet’s Investment Mistakes

06:31 – How to Cope With Investment Losses

11:06 – Outro

Losing money in investments can be devastating, whether you lose $40 or $4 million. 

The emotional and psychological impact can profoundly affect your confidence, decision-making, and future success. 

So, in this article, we’ll explore how to reframe your mindset around losses so they don’t negatively impact you. 


The Meaning We Assign to Losses

Human beings attach meaning to events, especially negative ones like financial losses. 

Even though we live in modern times, our brains still operate in an evolutionary “survival” mode. 

So, when an investment loss occurs, it feels like a massive blow to your confidence and abilities. 

You may start doubting yourself, making it mean something bad about who you are. 

This type of thinking can paralyse you from taking future risks or learning from your mistakes. 

If left unchecked, self-doubt can impact your psyche in cancerous ways.

So, it’s critical to digest losses healthily without letting them define you.

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