How to Protect Your Portfolio From Yourself

Portfolio Manager • Jul 18, 2021 at 5:30 PM EDT

Your brain may be playing tricks on you and putting your portfolio at risk. These tricks are called investment biases. Today, we discuss these biases.

Did you know your brain is playing tricks on you and could put your portfolio at risk? These tricks are called investment biases. It is important to know them in order to protect your portfolio from yourself. Today, we’ll go through 8 investment biases, as well as the ultimate solution against each.

You’ll Learn

What is the confirmation bias and how to avoid it.
How the consensus bias can lead to events like the GameStop (GME) one.
How the regret or loss aversion bias is directly related to your emotions, and how it can can lead to paralysis by analysis.
How can you recognize the “playing Monday morning quarterback” in the investing world and what is the best solution for it.
How crucial adding context is to avoid the anchoring and the recency biases.
How we avoid our own flaws: the overconfidence and self-attribution biases.
Which bias is investors’ worst enemy and why.

Audio Length: 00:34:31

Disclaimer:

TM editors' note: This audio mentions a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

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