How Your Brain Tricks You Into Making Bad Investment Decisions

Studies abound showing how our mental biases thwart sound investing decisions, the 5 common ways your brain screws you up are:

  • You do what everyone else is doing because of herd behavior.
  • You confuse “cheap” with “value.”
  • You throw good money after bad.
  • You practice loss aversion and that leads to bad choices.
  • You think the future is more unpredictable than it is.

via Business Insider

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