List of Flash News about loss aversion
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2025-06-02 16:04 |
Deprival Super Reaction: How Loss Aversion Impacts Crypto Market Volatility and Trading Strategies
According to Compounding Quality (@QCompounding), the Deprival Super Reaction refers to the tendency of traders and investors to react more strongly to losses than to gains, as illustrated by the public backlash over 'New Coke.' In financial markets, especially in cryptocurrency trading, this psychological bias can lead to exaggerated sell-offs and heightened volatility even from minor losses. Traders should recognize this behavioral pattern to better manage risk and avoid impulsive trading decisions, as such overreactions often create short-term price distortions and liquidity traps in volatile assets like Bitcoin and Ethereum (Source: Compounding Quality on Twitter, June 2, 2025). |