Are you in need of some financial therapy? Acknowledging the existence of an entire financial therapy industry (including a professional association of financial therapists and an academic journal dedicated to the subject), the author of today’s article emphasizes the need for every investor to factor the personal and subjective aspects of investing into their plan for success in the markets. As such, he provides a diagram of 20 cognitive biases that can negatively impact decision-making, and highlights those he believes represent some of the most common dangers for investors. Is your investing strategy falling prey to the “anchoring bias” or the “bandwagon effect”, among others? CLICK HERE to read more.
