Losing money really hurts
Studies of people’s brains with financial loss show that it intrinsically hurts to lose money.
The researchers found surprising similarities between the response to financial losses and a system that they had previously identified for responding to pain, which they believe allows the brain to predict imminent harm and allow immediate defensive action to be taken.
The reward and defensive systems relating to financial loss were very similar to motivational systems previously identified in rats, which suggests they have hijacked an evolutionarily old system connected to avoiding fear and pain.
This is scientific evidence that trading is mental torture.
