Lanceljx
05-10

$Tiger Brokers(TIGR)$ The hardest emotional bias to overcome in investing is likely loss aversion. This bias, rooted in behavioural finance, stems from the human tendency to feel the pain of losses more acutely than the pleasure of gains. It can lead to poor decision-making, such as holding onto losing investments for too long, in the hope of recovering losses, or selling winners prematurely out of fear of losing unrealised profits.


Other Common Emotional Biases in Investing:


1. Overconfidence: Believing one has more knowledge or skill than they actually possess, leading to excessive risk-taking.



2. Confirmation Bias: Focusing on information that supports one’s existing beliefs while ignoring contradictory data.



3. Herd Mentality: Following the crowd rather than conducting independent analysis, often leading to buying during bubbles or selling in panics.



4. Anchoring: Fixating on a specific price point (e.g., a stock's purchase price) when making decisions, even if it’s no longer relevant.



5. Recency Bias: Giving undue weight to recent events and neglecting historical data or long-term trends.





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My Own Investing Challenges:


The common "bad habits" in investing that individuals encounter include:


Impulsivity: Making decisions based on emotions rather than a disciplined strategy.


Overtrading: Frequent buying and selling, often eroding profits through fees and poor timing.


Lack of Diversification: Concentrating investments in a few assets, increasing risk.


Ignoring Long-Term Goals: Focusing on short-term fluctuations rather than sticking to a plan.


Keep Losing Money 😿 Time to Change These Bad Habits?
It’s said that 85% of people don’t make money trading stocks. Even someone as brilliant as Newton wasn’t spared. That’s because trading isn’t just about technicals and fundamentals—it’s a game of human nature. What do you think is the hardest emotional bias to overcome in investing? Which bad habit do you have in your investing?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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