In the investing world some very distinctive feature are alerting you to a particular opportunity or something to be concerned about - Peaking your Curiosity. Base Rate Neglect Bias: Try to think in probabilities when ever possible, because there are so many statistics out there.
Behavioral fimamce book "Understanding Behavioral Bia$: A Guide to Improving Financial Decision Making" wiil launch on November 4, 2019, starting with the e-reader. The book is Available on Amazon.
More information at https://www.mentalmodelspodcast.com
Selection Bias can keep us hunting for what is most present on our mind, Waldo or the new Toyota we are planning to buy. Once we have committed to a decision we will see that specific brand everywhere. We are experiencing selection bias. Our brain is guiding us to what is most present on our...
Be the courageous investor! Fear linked to 3 things:
1: To little information
2: Potential Threat
Investing is linked to 2 things:
The Salience Bias is linked to fear and uncertainty and your primal brain functions in your amygdala. There are 2 types of...
Rationalization and thesis drift is akin to wrestling with muddy pigs... it’s slippery and you will lose $$$. For investors ”thesis drift” is the tendency to rationalize bad news and come up with fresh reasons to still like a stock. Don’t accommodate your viewpoint for a group of facts that you...