Betting for long run? 9 behavioral bias that investors should watch out for

Investor behaviour is influenced by several biases that can cloud judgement, resulting in suboptimal investment decisions. Some of these biases include self-attribution, herd mentality, trend-chasing, loss aversion, disposition effect, representativeness, confirmation bias, familiarity bias, and recency bias. Investors should identify and understand these biases to avoid their ill effects. It is important to stay objective, invest for the long term, identify risk tolerance, determine an appropriate asset allocation strategy and rebalance portfolios regularly to generate higher returns. Seeking advice from a professional investment advisor can also be beneficial.

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