Date: January 12th, 2018 9:46 PM Author: cracking sneaky criminal house
assuming the same impact on your day to day life? the fucking house money effect seems irrational but everyone mentions being cool losing fuck tons of money bc it’s just “house money.” bro if i lost 1m of “house money” i might fucking off myself
Date: January 12th, 2018 9:56 PM Author: cracking sneaky criminal house
or just lost 250k of your own investment then. either way i lost $250,000. you see my point here, no? it’s bizzare that people think about the same amount of money differently in different situations. house money buys just as much shit as any cash you put in
Date: January 12th, 2018 9:58 PM Author: soggy potus
obv both would suck. but it's just the psychology man- you take more risks with something you perceive to have gotten for free (gambling) than you would money you had to slave away wagecucking for
Date: January 12th, 2018 10:16 PM Author: cracking sneaky criminal house
^whoops this goes in the chain above
True but either way you’re not getting those man hours back. I can see psychologically why it’d hurt more to lose money you swear. Rationally it shouldn’t matter though. Full disclosure I’ve read a ton of behavioral Econ so I’ve consciously learned to ignore most common irrational thought pattern like the house money effect. Those can lead to bad decisions (eg being way too risky with house money)
Date: January 12th, 2018 11:36 PM Author: Territorial theatre crotch
Brother, if in your modified hypo above you can’t differentiate between losing 250k in profit after banking back your initial investment and losing a 250k initial investment without banking anything, there’s not much anyone is going to be able to do to explain it to your 105 IQ ass.
Date: January 13th, 2018 1:24 AM Author: soul-stirring cocky newt
The difference is in the mentality of the investor. With "house money", you are more likely to hodl. Which has been a good thing for 95% of crypto in the last 5 years. HTH