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.

This article analyzes the phenomenon of volatility aggregation and its causes, and explores the amplification effect of information flow and leverage effect on volatility. In view of the failure of traditional risk control models in periods of high volatility, it is proposed to use time-varying volatility models and stress tests to guide traders to establish an adaptive risk management framework and achieve steady participation in the ups and downs of market cycles.