Don't Let Scammers Spoil the Season
The holidays are full of surprises. Most are welcome. But scammers take advantage of the season to deliver some you don't want. When you are busy and distracted, a convincing call or email can catch you off guard.
Six mental shortcuts that cost real money.
Loss aversion
Losses feel roughly twice as strong as equivalent gains, which is why selling at the bottom feels like relief.
Recency bias
We assume the last twelve months predict the next twelve. They rarely do.
Herding
Crowds provide comfort, not returns. The most crowded trade is usually the most expensive one.
Confirmation bias
We read what we already believe and call it research.
Anchoring
The price you paid is irrelevant to what an investment is worth today, yet it governs the decision anyway.
Action bias
Doing something feels responsible. In investing, doing nothing is frequently the harder and better choice.