5 common investing biases and how to avoid them

A cognitive bias, or psychological bias, is like a subconscious trick your brain plays on you that might cloud your judgment. When it comes to investing, there’s a unique set of cognitive biases that could prevent you from making rational decisions with your money. Andy Nasr, the Chief Investment Officer at Scotia Wealth Management, is back to break down five common investing biases and how you can avoid them.

Key moments this episode: 

1:30 — Before we start, Stephen has to get something important off his chest with Andy

2:03 — What is a psychological bias when it comes to investing? 

3:30 — Investing bias #1: overconfidence  

5:35 — Investing bias #2: regret aversion 

11:34 — Investing bias #3: herding 

12:37 — Investing bias #4: being overwhelmed by options 

15:47 — Investing bias #5: the endowment effect 

17:24 — The most important takeaway when it comes to looking at these biases