Biases to avoid while investing
✔️ Loss Aversion
• Sensitivity towards making losses changes determination
• This makes investors to take too moderate risks
✔️ Mental Account
• The mental account inspires agenda-based decisions
• Investors make intelligent choices when it’s goal-oriented
✔️ Herd Mentality
• Following in the wake of other investors should be avoided
• Thinking for yourself as per your needs is more important
✔️ Over Confidence
• Investors perceive themselves better in specific scenarios
• Gives rise to rash decisions rather than informed ones
✔️ Anchoring
• Initially gathered information drives your future plans
• Investors might end up holding on to stocks instead of selling
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Posted On: 27 Dec 2022 1:00 PM