From Investing.com: 2024-05-04 02:03:00

Investor psychology plays a crucial role in achieving investment goals. Behavioral traits like confirmation bias, gambler’s fallacy, probability neglect, herd bias, and anchoring effect often lead investors to make poor decisions. These biases cause individuals to buy high and sell low, chasing performance and following the crowd. To make better choices, it is essential to analyze information objectively, consider probabilities, resist herd mentality, and avoid anchoring to past experiences. By focusing on investment discipline, minimizing risks, and maximizing profits, investors can overcome these behavioral obstacles and improve long-term returns.



Read more at Investing.com: 6 Behavioral Traits That Are Killing Your Portfolio Returns