As seniors retire, they have more time to focus on investments. You may jump into day-trading or take the safest road to moderate gains with bonds or mutual funds. Understanding emotional pitfalls that play in your decisions could increase the likelihood of positive results, especially if a behavioral scientist is alerting you to biases you may not realize you have.
Some investors determine that they have to avoid losing money at all costs. Loss is a stronger motivator than the pleasure of gain. However, investing too conservatively or selling at a low point of market volatility could derail your long-term goals. Short-term losses can become long term wins in riskier investments.
Did you know that people tend to latch onto the first information they receive? They also find comfort in following the crowd, even if the crowd is their neighbors or relatives. People love following their gut or seeking out information that confirms what they already believe. All of these behaviors could mean big trouble for increasing your financial portfolio.
Read HERE for six pitfalls to avoid when investing. You’ll also learn how biases play out and the steps to prevent them. You may be richer if you do!