An investor takes on higher risk while investing money made from profits. People often think about investing income as separate from the money they earned from other ways.
This behavior is referred to as House Money Effect. The word house has aspired from casino gamblers who often make larger bets after successive wins.
Even the investors are comfortable taking more risks with other people’s money than one’s. That’s a cognitive bias we have.
Humans never like to lose hard-earned cash. They are move risk aversive while investing with that amount. But after making a profit from the initial amount investors become risk-takers with the net profit amount.
Why doesn’t the profit seem like hard-earned cash?
What does make us take more risk with profit?
Check out about the basic of Risk here.
Igniting Curiosity.. 
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