Loss aversion is a psychological concept that suggests people feel the pain of losing something more intensely than the pleasure of gaining something of equal value. For example, if you lose $100, the emotional impact is often stronger than the joy you would feel from winning $100. This tendency can lead individuals to make decisions that prioritize avoiding losses over acquiring gains. In everyday life, loss aversion can influence behaviors such as investing in the stock market or making purchases. People may hold onto losing investments longer than they should, fearing the loss, or hesitate to try new products, worried about wasting money. Understanding loss aversion can help individuals make more balanced decisions.