▼
Showing posts with label Heuristic-driven biases. Show all posts
Showing posts with label Heuristic-driven biases. Show all posts
Tuesday, 12 May 2020

One of the biggest mistakes an investor can make is ignoring or denying his or her biases.

›
The thought process through which most of us arrive at our view of the future is highly reflective of our biases. Given the unusually wide...
Wednesday, 9 May 2018

The Hidden Traps in Decision Making

›
Making decisions is one of the most important things we do in our daily living.  It is also the toughest and riskiest in some situations. ...
Saturday, 29 April 2017

Psychological Biases

›
Loss Aversion Behavioural finance asserts that investors exhibit loss aversion, that is, they dislike losses more than they like comparab...
Friday, 28 April 2017

Behavioural Finance

›
Behavioural finance looks at investor behaviour to explain  why individuals make the decisions that they do,  whether these decisions ...
Monday, 14 December 2015

Heuristics

›
Heuristics are simple rules of thumb, developed by humans, which enable them to efficiently make decisions. Heuristics are essentials; wi...
Friday, 26 June 2015

"The 4 Diseases" of Investing - Evenitis (holding to losers), Taking profits (selling winners), Over-trading and FOMO

›
Teaminvest Co-founder Professor John Price, recently recorded an informative 4.5 minute video about the behavioural biases that often...
Sunday, 17 November 2013

'Being human" costs the average investor around 3 - 4% in return every year.

›
The cost of being human When it comes to investing, human nature doesn’t help. Our innate need for emotional comfort is estimated to co...
Saturday, 7 January 2012

6 Reasons You're A Bad Investor

›
BY  James Early Published in Investing on 5 January 2012 These mental traps may be killing your portfolio. Made a New Year's resolut...
Sunday, 8 August 2010

Knowing about the psychological biases is not enough. You must also have a strategy for overcoming them.

›
Battling Your Biases Remember the day-trader cartoon in Chapter 1? The roller coaster called "The Day Trader" represents the mo...