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Are behavioral biases causing mistakes among investors?

Behavioral Biases Are Causing Mistakes Among Investors: Here's How You Can Protect Yourself - SmartAsset Advisors have noticed a pronounced impact of behavioral biases affecting the investment habits of their clients. Here's how you can protect yourself.

What are investing biases?

Broadly, investing biases fall into two main categories: cognitive and emotional. Both biases are usually the result of prejudice for choosing one thing over the other . Identifying and understanding unprofitable cognitive and emotional biases can help a trader improve their total return.

Do psychological biases affect the psychology of investing?

The field of behavior science explores psychological biases which shape investment decisions, and often lead to outcomes that diverge from rational expectations. Below is a dive into the fascinating world of psychological biases and their profound effects on the psychology of investing. Loss Aversion: Fear of Letting Go

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