Financial markets have regularly produced significantly positive returns for long-term investors. Despite the track record, the experience of investing remains difficult for most–much less having the discipline to stay invested over time. This can be partially explained by the fact that people feel the pain of loss more than they feel the pleasure of gain, also known as loss aversion. In market terms, this means that we are willing to forego the potential for long-term growth to avoid the idea of a loss. Carl Richards describes this behavior and how it relates to investors in Overcoming an Aversion to Loss.