Say we had the following two situations:
1) You invest $10K in some stock, and lose $1K.
2) You carry $10K in cash by grasping it in your fist, open to the world. Some unforeseen event causes you to lose $1K (e.g. strong gust of wind knocks you over and $1K in bills flies away, or some bum runs up beside you really quickly and manages to snatch away $1K).
Obviously both scenarios suck, because losing a thousand bucks isn't fun. But, the question is... Do you feel differently about how the money was lost in both situations? Bottom line is that at the end of the day, you are out $1K. But, do you dwell over one loss more than the other? Is it irrational to do so or not?
And, no, this has nothing to do with a real-life situation. Although, it does stink that NTAP jumped today while EBAY sank.