This article analyzes loss aversion and disposition effect in behavioral finance. Explore why investors tend to sell winning positions too early and hold on to losses over the long term. Analyze the interference of the brain's fear center on trading decisions, and provide institutional suggestions for building an anti-fragile decision-making framework to help traders overcome cognitive biases and improve long-term viability.

This article provides an in-depth analysis of the disposition effect and loss aversion in trading psychology. Explore why investors tend to sell winning positions too early and hold on to losses for the long term. Analyze the interference of the brain's fear center on decision-making, and provide practical suggestions for building an anti-fragile decision-making framework to help traders bypass irrational instincts and achieve scientific stop losses and hold profits.