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 ...