Heyy..Delugne Nation! This episode is the continuation of the previous episode in which we discussed why investors are so irrational, what are the most common behavioral biases that affect our decision making and what can we do about it?
Simply being aware of this will make you become a better investor because now you can prevent yourself from getting affected by all these behavioral biases when you're making any investment decisions.
So, let us just recap. In our previous episode, we discussed the 3 most common behavioral biases:
1. Overconfidence Bias - The tendency to hold misleading beliefs of our own skills, intellect, or talent. And making us believe that we are better than the person we actually are.
2. Anchoring Bias - This is when we rely too much on pre-existing information or the first piece of information we come across and unconsciously using that information to making our decisions.
3. Herd Mentality Bias - This is when investors follow or copy what other investors are doing. This usually happens when we are influenced by emotion and instinct, rather than doing independent analysis.
If you haven't checked out the previous episode (Episode 82, Part 1), be sure to check that out so that you can understand this episode better.
So, what are the other biases that affect our decision making? That's what we will be discussing in this episode.
Check out this episode to find out more!
Also, if you find this podcast beneficial to you, do SUBSCRIBE & SHARE it with someone who will benefit from this as well. I believe the world will definitely be a much better place when we start giving, loving, sharing. That is my definition of abundance.
If you have any questions in mind that you'd like to ask, feel free to send us your questions at Delugne.com and I will do my best to get them answered.
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Source:
1. Behavioral Finance - Corporate Finance Institute
https://corporatefinanceinstitute.com/resources/knowledge/trading-investing/behavioral-finance/
