No matter how smart or well educated you are, and no matter how successful professionally, when it comes to investing you still might not make the best decisions.
That’s because you’re human, which means you’re hardwired to respond in certain ways that serve you well in many parts of your life, but tend to work against you when it comes to making smart investment decisions, according to psychologist Daniel Crosby, author of “The Behavioral Investor.”
“Not only is high intelligence not an insulation [against bad financial decisions], it might be a red flag,” Crosby said.
But here’s the thing: If you’re aware of your mediocrity when it comes to the markets, it can actually help you be a better investor.
Based on decades of leading behavioral research, Crosby said investors easily fall prey to four inherent biases. But when you’re mindful of them you can take steps to either mute their…
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