The WPF Coin Flip Risk Assessment

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Nobody wants to lose money!

Psychologically, it hurts much more to lose than it feels good to win. Think about how you would feel taking $1K out of an ATM and then having it fall out of your pocket. Now think about how you would feel to learn everyone at your company including yourself were given a $1K (net of tax) bonus at work. Personally, I’d be much more upset about losing the cash than happy about the bonus.

Even though it hurts more to lose than to win, remember that in equal amounts, they have the same financial effect! Is this fear of loss holding you back when you invest?

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