3 Psychological Mistakes That Hurt Investors
Even though "average" means 50th percentile by definition, 65% of Americans believe they have above average intelligence. That means at least 15% overestimate their general intelligence. Imagine how much more difficult it is for them to accurately assess their investments!
People don't make bad financial decisions because they're dumb. It's because they're human, and humans are wired to approach investment topics in suboptimal ways. Three psychological factors that hurt investors are:
Whether it's a great party or an investment that might triple next month, you don't want to miss out on the fun. People are wired to feel anxiety and respond to their fear of missing out (FOMO) based on emotions.
Source Fool.com