There have been tons of studies showing just how our mental biases sabotages us from making sound investing decisions. The most common ways your brain screws you up include:
- 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.
If this sounds a lot like yourself, then check out the below infographic done by
Eddy Elfenbein to see how you can retrain your brain: