Here's a fascinating article about how golfers demonstrate risk-aversion by showing a preference to avoid a perceived penalty (losing a stroke relative to par) rather than go for a perceived gain (gaining a stroke): http://www.nytimes.com/2009/06/16/sports/golf/16study.html?hp=&pagewanted=print Quotes: "But just as quickly as pro golfers admitted to their costly habit, they dismissed the idea of being able to do much about it. Stewart Cink, who showed a 3.3 percent effect, said that try as he might, he would never be able to convince himself that every putt is the same." âYou canât fool yourself,â Cink said. âBut this is one of the reasons why we use sports psychology, and we try to have a preshot routine so we do the same thing, approach every putt the same way. Itâs not always glamorous, and itâs not always possible in reality.â âA 10-footer for par feels more important than one for birdie,â said Goydos, a two-time winner on the tour. âThe reality is, thatâs ridiculous. I canât explain it in any way other than that itâs subconscious. And pars are O.K. â bogeys arenât." What's interesting to me is that the players are so aware of it and they understand that there is little they can do about it. It's interesting to see these psychological aspects manifest themselves in areas beyond trading, and it shows why trading can be so tough. Hmmm...if it happens to Tiger Woods 5% of the time, maybe I'm not as bad as I thought?