Deep Dark Side of Success: Loss Aversion

Why do we risk small and expect to win big in the game of life? Often, it's not because we are naturally risk-takers but because loss aversion and fear silently guide us in ways we don't always recognize.

The story begins with a Nobel Prize. Daniel Kahneman, a psychologist, shook the world of economics by unveiling the biases that cloud our rational judgment. His work revealed how humans are wired to fear loss more than they cherish gain, a concept that sheds light not only on economic behaviors but also on how we approach relationships, careers, and personal growth.

In the book Nudge, a simple experiment highlights the idea: students are given university-branded mugs, and later, they're asked to sell them. Those who own the mugs value them at nearly double the price compared to those who don’t. The attachment to the mug, something they barely cared about minutes earlier, becomes powerful. It’s the classic dilemma—once we possess something, we overestimate its value because the thought of losing it causes discomfort. This is loss aversion in action.

But it’s not just about mugs; it’s about the choices we make every day. Kahneman’s research showed that losses hurt twice as much as equivalent gains feel good. This doesn't only apply to money—it affects how we approach opportunities, new relationships, and even creative ventures.

For years, I lived in the shadow of this fear. I would carefully avoid risks that might threaten my comfort zone, clinging to what I had, no matter how small. I didn’t realize that this hesitation was keeping me from experiencing growth and success. It wasn’t until I stumbled upon this research in Decisive and Nudge that I understood why.

Take, for example, art and creation. Every time I started a new painting or took on a creative challenge, I feared failing. I worried about how it would be received, or worse, if I’d ruin the vision in my head. But loss aversion works the same way in creative endeavors—we fear ruining something or not living up to expectations, so we don’t take the leap.

It took a conscious decision to change. For two days, I forced myself to adopt a pro-risk mindset. I chose to challenge my natural inclination towards safety. I hit the metaphorical switch, taking risks in small, everyday decisions—from buying a lottery ticket to betting on outcomes that were far from certain. I let go of the fear of rejection and failure, embracing the possibility of success instead.

What helped was developing a motto: What am I willing to give up to gain $100? Or, in the words of Albert Einstein, "I must be willing to give up what I am in order to become what I will be." This mindset change pushed me to take risks with my art, to experiment more freely, and to create pieces that I might have otherwise abandoned.

Another important realization was how much time I spent documenting life instead of living it. I was obsessed with capturing moments on my phone—Instagram wish lists, reminders, snapshots—fearing I’d miss out. But this, too, was a form of loss aversion: the fear of losing a moment by not capturing it. So, I put my phone down and embraced the present.

Negative thinking was another battle I had to fight. Worrying felt productive, as though if I considered every possible failure, I’d avoid it. But worrying is just another form of risk aversion—an attempt to control outcomes by imagining the worst. By focusing on the positive outcomes instead of fixating on the negative, I began to make bolder decisions, both in life and in art.

After just three days, I started to notice the shift. My mindset became more flexible. I wasn't just more willing to take risks—I felt less burdened by the potential of failure. One day, I timed myself. Over 14 hours, including sleep, I saw how my strategy to reduce loss-oriented thinking played out. I felt lighter, more open to possibilities.

This wasn’t just a mental shift—it directly influenced my art. Suddenly, I found myself exploring darker, more daring themes in my work. A gambler with an optimistic face, hiding his fear behind bravado. A risk-taker standing on the precipice, facing a choice with both excitement and dread. Through my art, I was able to channel these emotions, these fears, and create visual stories that resonate with people facing their own internal battles.

The takeaway from all this? Loss aversion and risk aversion are two sides of the same coin. People believe they’re making rational decisions, but often, they’re just clinging to the familiar because of fear. Breaking free from this fear opens up new creative possibilities. And yes, while self-discipline may falter, simply knowing this gives us an edge. It allows us to take a step back and reflect before letting fear make the decisions for us.

As an artist, the exploration of fear, risk, and decision-making has added layers to my work. I now see the deep psychological landscapes that influence not just the choices we make but the art we create. My hope is that by sharing this journey with you, you’ll be inspired to confront your own loss aversion and take risks that lead to growth—both in life and in creative expression.

So, here’s to letting go, embracing uncertainty, and creating art from the shadows of our fears.

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