Losses can trigger a fightor-flight response from "summary" of Your Money and Your Brain by Jason Zweig
When you lose money, your brain might react as if you are in physical danger. The idea of losing money can trigger a response that is similar to what happens when you are faced with a threat in the wild. This reaction is known as the fight-or-flight response, which is a primal instinct that helps you deal with danger by either confronting it or running away from it. When you experience a financial loss, your brain perceives it as a threat to your well-being, activating the same neural pathways that are involved in the fight-or-flight response. This can lead to a surge of stress hormones like cortisol and adrenaline, which can cloud your judgment and make you more prone to making impulsive decisions. Your body goes into a state of heightened arousal, preparing you to either fight to recover your losses or flee to avoid further harm. This response is deeply ingrained in our evolutionary history, dating back to a t...Similar Posts
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