Freebeginner 6 min read
The Biases That Cost You Money
The emotional edge is usually larger than the informational one.
Markets are a mirror. The biggest edge isn't usually informational, it's emotional.
- Loss aversion, losses hurt ~2x more than gains feel good
- Anchoring, fixating on irrelevant reference prices
- Recency bias, extrapolating the last 6 months forever
- Confirmation bias, seeking only what supports your thesis
“The investor's chief problem, and even his worst enemy, is likely to be himself.”
Key takeaways
- 01Recognize biases in yourself before you can act around them.
- 02Process beats prediction, write decisions down to audit later.
- 03Patience is a structural advantage if you can hold it.