Investing Psychology Chapter 6: Proving Yourself Wrong (Part 2)
Continuing our look at Chapter 6. We know we need to look at the numbers. Now let’s look at the specific mental exercises that can save your portfolio.
Confirmation bias
Confirmation Bias in Investing: Seeing Only What You Want to See
Francis Bacon said it centuries ago: humans are “more moved and excited by affirmatives than by negatives.” Chapter 6 of Pompian’s book is about confirmation bias, and honestly, this might be the most dangerous bias in the whole book.
Behavioral Biases Part 1 - Heuristics and Judgment Traps
Chapter 2 of “Behavioral Finance for Private Banking” is where the book gets really practical. This is where Hens, De Giorgi, and Bachmann lay out the specific mental traps that mess up our investment decisions. And there are a lot of them.