We all have biases about our favorite and least favorite things. When it comes to investing, what biases should we be aware of? When you go to work with a financial advisor, it’s important to take in their advice and the resources available to you instead of simply letting your judgment be overly influenced by your biases. An advisor may be able to keep those biases balanced against your financial plan.
Here are some of the biases you might experience:
- Looking only for information that provides confirmation bias. 2:30
- Loss aversion bias can make you overly fearful. 6:00
- You might be prone to chasing a trend. 10:16
- Self-attribution bias can overlook external factors. 15:30