Paula: Is it common for people to ping pong between different biases? And how does a person pull out of it if they find themselves in the midst of that? Some investors are just more susceptible to certain of the biases, and other investors are susceptible to other ones of the biases. Over confidence is one example. Disposition is another. So i guess my point is, paula, that we don't fall prey to them in equal amounts. Some them are more likely to impact us based on on who we are and some of our brain chemistry. We're all so wonderfully different as human beings.
#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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