The conversation between human and AI assistant.
[|Human|] Give me an example of a loss-aversion strategy
[|AI|] A loss-aversion strategy is a tactic used to minimize potential losses rather than seeking gains. An example of this strategy is diversifying your investment portfolio. By spreading your investments across multiple assets, you reduce the risk of losing a significant amount of money in case one investment performs poorly. Instead of putting all your money into one stock, you might decide to invest in several stocks, bonds, and mutual funds. This way you reduce the risk of losing all your money in one go as the gains from some assets may cushion losses from others. Another example of a loss-aversion strategy is the use of stop-loss orders, where an investor sets a predetermined point to sell an asset when its value drops to a certain level, in order to minimize loss.
[|Human|] 
Give me an example of a loss-aversion strategy