The emotional experience of investing can feel overwhelming for most. As the market acts in erratic ways, it’s important to recognize how and why your emotions will affect your decisions. Unfortunately, most investment companies do not explain these concepts to us (why? we’ll never know). However, Anton and Nyle outline each of the most important cognitive and emotional bias’ in a two-part series.
In part one, it’s all about the ever illusion COGNITIVE BIAS. These types of bias’ are cunning and sly. They are misunderstandings disguised as truth, which can tremendously impact your investing mindset. The ultimate key to minimizing the impact of cognitive bias is self-awareness. The process of developing self-awareness cannot skip the informative step of acknowledging the existence and constant force of imperfect knowledge hovering behind our decision-making confidence.
If you have any questions or comments, let us know in the section below and we will personally respond!