🛌 A $300 loss hits harder than a $300 profit feels good

This is called loss aversion.

Nobel Prize winner Daniel Kahneman proved that the pain of a loss is about 2.5 times more intense than the pleasure of an equal gain.

Evolution wired our brains to survive, not to make money.

☕ So how does this affect trading?

• You hold a losing trade longer than you should. “Maybe it’ll bounce.”

• You close a winner too early. “Better take it while it’s there.”

• One red day wipes out an entire green week in your mind.

Sound familiar? You’re not a bad trader. It’s brain chemistry shaped over thousands of years.

🗿 So what can you do about it?

You can’t outsmart your brain. Fighting emotions doesn’t work.

But there is a solution.

When your risks are defined before you enter the market, your stop is exactly where it should be. Your daily loss limit is set before you even open the terminal. A loss stops feeling like a catastrophe.

That’s how prop trading works.

😙 At Upscale, risk parameters are built directly into your account

You’re not deciding in the moment how much you can lose. That’s already defined. Your only job is to trade within the rules.

And when you do that, losses stop being a punch to the gut. They become part of the process.

The trader who understands this is unstoppable!