Why do we Book Profits very Early and Let the Losses Run to Infinity....

Well the explanation runs to millions of years ago.....
When we were living in the Savannah Jungle and being hunted by wild animals the most important thing for our being was Survival....
Well survival was necessary to pass our genes to the next generation.....but for survival food..... shelter and water were the most important thing.....
Well when living in the Savannah Jungle these were rare commodities and very difficult to find and basically our race were scavengers and survived on food killed by other animals.....so whatever was available had to be eaten immediately and drank immediately.... the game was all about Instant Gratification......I mean Now or Never..... because to find food water and shelter in the jungle were very difficult and whatever our Race found had to be eaten and drank instantly......also food was not readily available like in today's world.....we had no weapons or had no strategy or had no idea how to kill an animal and eat..... because we started the concept of farming and agriculture just 5000 years back.....
Due to this struggle of millions of years we develop the habits and behaviours of Instant Gratification..... and this instant Gratification habits and behaviours got ingrained in our Genes and so in our brain..... and this reflexive functions were controlled by the Limbic Part of our Brain..... like in Animals....  if you have noticed that Animals behave in the same manner today also.... what we used to do through out our Evolutionary Life......
If you notice that the fear of losing the food to other animals and getting killed was so great in the Savannah Jungle that it made correct sense of practising Instant Gratification.....

We never had the opportunity to learn about Delayed Gratification whose functions are controlled by the most recent human part of the Brain.... Pre Frontal cortex......

So presently also for most of the things if you have noticed majority of our decisions are based on Instant Gratification...... now or never.....kaal kisnae dekha hae ....aaj kii baat kar.....am I right......
Now this Evolutionary gift of instant Gratification which was very important for our survival and helped us to navigate through millions of years has become a Bane in today's complex world where survival for need of food and water and shelter is not important.....

Stock market Relationship......
The topic i have chosen today of why we book profits earlier and let losses run to infinity is all because of this Evolutionary gift of Instant Gratification......
The other word for the topic is also called Disposition Effect.....
To book immediate profits and fear of losing that profits forces us to Sell the winners because of this Evolutionary genes ingrained in us......