This phenomenon reflects loss aversion, and Spencer mentions that this investing bias is normal. "Loss aversion is natural and affects everyone. People seek pleasure and want to avoid pain," he says.

Nobody wants to lose money, and loss aversion is a prudent part of an investment strategy. But when it goes to extremes, it can hurt retirees more than it helps. When planning for their futures ...

Unfortunately, that very feeling of risk aversion might increase the chances that you make investing mistakes. On the flip ...

Additionally, individuals with higher levels of loss aversion demonstrate a reluctance to invest in supplementary cyber risk ...

Medvec, Victoria Husted, Kathleen L. McGinn, and Richard Thaler. "Concession Aversion: A Story of Loss and Betrayal." Harvard Business School Working Paper, No. 00-026, September 1999.