Missing a move by staying flat hurts less than losing the same amount by entering, even when the money is identical. That asymmetry quietly distorts a whole approach.
It pushes traders toward passivity in exactly the situations where a decision is required: not cutting a loser, not hedging an exposure into an event, not reducing size when conditions change. Each is a choice, but it wears the costume of no choice.
Naming inaction as a trade fixes most of it. In your log, record holds and skips alongside entries, with the reason attached. A skipped hedge that costs you three percent should read as a decision you made, because it was.
Related: status-quo-bias, action-bias, regret-aversion