Emotions over reason 🤯

This story looks strange, but it's true.

Humans value the feeling of loss.

More. Feel it.

Josh will show many examples.

If you lose 1,000 baht, you will feel

Very sorry.

And if you get $1000 back,

You're just gonna feel okay coming back.

Even after the same return.

But some people may be very happy to have it back.

Teenagers who started working for a few years started thinking

Own bonus.

Each will expect a bonus this year.

Let's say I think I'll get 60,000.

But the bonus actually came out with only 57,000 baht.

You will not feel as good as you hoped.

You will see your friends get bonuses as others hope.

Think about it. You get more money.

But why does our feelings look like we lost?

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I'll let you choose between

Get 10,000 baht for free.

And throw heads tails. If you get heads, take it. 20,000 baht.

But if you throw tails, you get nothing.

What would you choose?

Another question.

You're gonna lose 10,000.

If you get a head, you lose 20,000.

But if you throw tails, you lose nothing.

What would you choose?

By the first question, Josh believes that many people

I'm going to choose $10,000 for free.

Instead of risking 20,000 or nothing.

Because the emotions involved

When we have to decide to be sure of the risks,

Most people tend to choose. Sure.

With the second question, Josh believes that many people

You choose to risk 20,000 or nothing.

Instead of losing 10,000.

Because in my heart it feels like

There's nothing to lose, so take a risk.

It would be like gambling.

We risked losing money to get our capital back.

Makes you want to bet on bigger money.

In order to get a large sum of money back.

Even if it costs more.

Emotions caused by a lack of self-inhibition and self-control.

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In conclusion,

When you are afraid of risk

When broken, risk.

By this theory, he called Prospect Theory.

People often give more than the value of loss.

It's from Daniel Kahneman.

And Amos Tversky.

Loss Aversion theory, human feelings when losing.

That will always be more intense than the feeling it gets.

Because the loss is painful.

More than the same amount of happiness received.

📍 what does that have to do with us?

Where do we keep the money today?

The average inflation rate is 2-3% or more, a savings account or an account that we keep every day.

Give me 0.25% interest a year?

Many people know that investment can yield more, but fear the volatility of the stock market.

Could be caused by a negative information response.

That has a 20% -50% chance of loss.

Or a 50% loss.

But refusing to choose to cut the loss

Because afraid to lose this stock.

That's why

Why do most people make missed decisions and make no sense?

That's because emotions are always above reason.

You can easily take away this feeling.

To just apply this to yourself.

📍 ask yourself what you're afraid of. Why are you afraid?

📝, write or speak.

Being drained makes us feel better.

Including, better understand that fear than let it circle your head.

You have to stop blocking your future.

Really conscious and rational.

Looking at the long-term picture more than the present.

Open up to study knowledge. Humans are afraid of the unknown.

How to overcome it, you just find out more.

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