Question

why is loss of wealth considered insignificant?​

Answer 1

Loss of wealth considered insignificant is the observation that human beings experience losses asymmetrically more severely than equivalent gains.

This overwhelming fear of loss can cause investors to behave irrationally and make bad decisions, such as holding onto a stock for too long or too little time.

Investors can avoid psychological traps by adopting a strategic asset allocation strategy, thinking rationally, and not letting emotion get the better of them.