How to Teach Your Brain to Chase Wins
Rather Than Avoid Losses
Our brains act in a certain way during certain situations. This is something we can not control. Our subconscious very often makes decisions itself, with us barely realizing that something has happened. Yet, every brain is completely individual and different. The cliche saying that all of us are different is in fact true. Our subconscious mind makes decisions uniquely as we all have gone through different paths, developing certain ideas about ourselves and the environment around us.
The main contributor to the “win/loss” argument is the financial industry. More specifically, they are usually Forex brokers accepting US clients as well as covering most of the global markets. According to the information gained from them, most customers that they try to help are very hesitant towards trying a new trade after their previous one was successful. This has many things to do with the anticipation of loss, but are usually connected to personal anxieties of the traders themselves.
Chasing losses - what makes take the risk and what restrains us from it
We are entitled to certain rules living in the modern world. However, environments in different countries vary significantly. Some have more competitive environments without many social guarantees, while others are more relaxed with supportive governments. Therefore, the needs of people in various nations are drastically different from each other. Nevertheless, all of us tend to avoid losses, instead of wins.
Forex trading has become one of the leading means of financial activity globally. The observation makes is evident that forex brokers accepting US clients are more likely to have lower revenues. This is due to the fact that American traders are much more careful with investing than those from other countries. For instance, an American with a stable financial background will not invest in a high-risk capita. They prefer earning less whilst having higher guarantees. On the other hand, people from Europe, particularly Nordic countries, are likely to take the risk.
This is caused by the phenomenon of feeling secure. People that have major savings, governmental or private assistance, are more likely to aim at winning rather than worrying about losing. This is not something unique and characteristic for certain countries only. We can just observe the trend in different areas, which is quite evident.
So what is causing our obsession with losses? Why are we so worried about the risks, which oftentimes are not even that high? The financial industry is not the only example. Rather, there are much simpler cases from our day to day lives. For instance, when a teenager decides to confess that they have done something wrong to their parents, they evaluate the risks first. What can be the outcome? What might I lose? Suspension? No phone for a week? On the contrary side, confessing can be more beneficial and can lead to winning the heart of parents.
Nevertheless, in such situations, the majority of people decide not to risk. We are simply too scared of risks that the potential winner does not look important enough. Therefore, we tend to take the safe path, avoiding any potential obstacles and risks. But is this the most efficient and effective way of navigating through different situations? No, it is not. So how should we escape this circle?
How to start chasing wins? Is this even possible?
Now, going against our natural way of thinking is not easy. However, if we want to achieve real, tangible results, we have to adapt. The most important thing in the process is, to be honest with our own selves. What do we want to achieve? Why are we going against the flow of our own minds?
Now, under no circumstances does the re-evaluation of the risks mean to jeopardize one’s financial stability. It in fact is the contrary. Before making any decision, we should thoroughly consider potential risks, options, and outcomes. After carefully evaluating every one of them, the decision can be made according to what actual risk are we facing. Is the potential to win much more beneficial than the loss? Then let’s risk it! Nevertheless, if the risks are too high and the losses might be detrimental, the best and the smartest decision is to simply not get involved.
Everything, in the end, goes down to the individual approach to various situations. Just like humans, no situation is exactly the same as the other. Yet, risks accompany them rather frequently. Therefore, instead of immediately starting to fear the risks, try to acknowledge the potential win and how much it can bring to the plate. Every success story, whether it is an overnight one or the one that took years started with taking risks. All in all, we should deep down realize that without acting and sacrificing, we will keep avoiding losses forever.