Hello guys from LeoFinance! That is my first time writing to the community, and the first since a long long time at the Hive platform. Let see if my english abilities are yet good...
"Aversion to loss creates an asymmetry that makes agreements difficult to reach. The concessions you make to me are my gains, but they are your losses; they cause you much more pain than they give me satisfaction. Inevitably, you will assign a higher value to them than I do. The same is true, no doubt, with regard to the very painful concessions you demand from me, to which you do not seem to give sufficient value. Negotiations over a shrinking cake are particularly difficult because they require an allocation of losses. People tend to be much more at ease when they are negotiating over a growing pie." - Daniel Kahneman
Negotiations that take place, whether in a tight-budget business venture or in various investments in the conventional or crypto market, individuals who find themselves involved in one or both contexts become tense when there is a higher possibility of losses than gains in the decisions being made, thus giving rise to risk aversion that can significantly influence the outcome.
In such delicate situations, various factors such as emotional intelligence, the ability to discern and think strategically about resource allocation, and how to optimize the decision-making process must be taken into consideration, especially when the cake is shrinking, being vigilant for it doesn't run out quickly and trying to make it grow again, as in the case of stock market operations. If a stock, for example, has fallen, it will rise again. It is necessary to analyze the scenario one is in and make intelligent decisions.
So, how do you approach negotiation situations? How do you manage your ventures? And what about investments, whether in a conventional manner or in the context in which you are reading this post? Psychology can help in moments like these, preventing individuals from falling into traps created by the mind and emotions when they are in an important negotiation or when they are operating and allocating finite resources, such as money.
