Why Your Brain Hates Stop-Losses

This one's simple: Your brain is designed to avoid pain — not manage risk.

1. 1

   Loss aversion

   A ₹500 loss feels twice as painful as a ₹500 gain feels good. So traders hold losers, waiting for "just a small bounce."

2. 2

   Survival wiring

   Your brain treats losses as threats → triggering fight, flight, or freeze. Most traders freeze.

3. 3

   The illusion of control

   Closing a losing trade feels like admitting defeat. So traders avoid the decision, even when the price clearly invalidates the trade.

4. 4

   Quants solve this by using rules, not emotions

   Quants don't "feel" losses. They predefine exits, automate them, and never negotiate with the market.