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.”…..
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Rising Dough
Which one of the four biases do you think has the greatest effect, and why?
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Being hardwired can be very useful for certain jobs like if you know how to work in an office job that has specific ways to process and work out its little issue its good to know what to do and how to do something if you good at following directions.
I feel that attention bias is the most important out of all of them in the current era, as it is more important today than ever. With so much news and media plaguing the entire world, with much of them being false, there is a good chance that people are being lied too while being completely oblivious. With so much cluttered information all around us in the internet age, this bias has the most extreme effect for our time.
Emotion bias has the greatest effect out of all the four biases. When it comes to controlling our emotions, lets be honest we really have no control. This leads to making poor decisions based on emotions, which we all do everyday.