Hey fellow savvy investors, I wanted to share a great article that I just read that I thought could help out many of you, especially those who have just started getting into investing. Kudos to you on educating yourselves and working towards a brighter future.
Key takeaways
- Natural human instincts often undermine our success as investors.
- Common pitfalls include aversion to loss and ambiguity, following the crowd, and focusing on information that's recent or confirms what we already believe.
- Antidotes include seeking out alternative information, doing your research, and developing a long-term financial plan that you can stick with.
- Avoid losses at all costs: Loss aversion 2."I am the greatest!" Confirmation bias
- Getting stuck on the first thing you see: Anchoring bias
- The breaking news problem: Recency bias
- There's safety in numbers ... right? Herding bias
- The devil you know: Ambiguity aversion
Submitted February 12, 2021 at 12:30AM by gentwithin https://ift.tt/3rK6LY3
