How do we distinguish between that psychological bias versus a rational decision to not be a bagholder, or to sell when valuations seem to no longer be rational? One suggestion i would make is wait for a month. Wait for a month before making a decision, and during that month, examine your your motivations. Simply asking the hard questions of ourselves is one way that that we can start this work.
#388: Recessions are terrifying.
Market crashes often bring out the worst in people’s anxieties and fears.
This fear triggers us to act even more irrationally than usual – which can lead to making expensive mistakes in our investment portfolios.
In today’s episode, Scott Nations, who spent his career studying market volatility, describes some of the most common cognitive biases and irrational behaviors that investors make. He shares tips on how to master the mental game of investing, especially in turbulent times.
For more information, visit the show notes at https://affordanything.com/episode388
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