PHOTO: 5 ways your brain tricks you into making horrible investment decisions
SINGAPORE - Studies abound showing how our mental biases thwart sound investing decisions.
Value Stock Guide has compiled the five main ways this happens into a nifty infographic.
With this, you might be able to avert making a bad call at the stock market.
The five common mistakes that lead to a series of bad investment decisions are:
You do what everyone else is doing because of herd behaviour.
You confuse "cheap" with "value."
You throw good money after bad.
You practice loss aversion and that leads to bad choices.
You think the future is more unpredictable than it is.