Confirmation Bias
Confirmation bias is the tendency to seek out, interpret, and remember information that confirms pre-existing beliefs. This bias can cause investors to ignore contrary evidence, leading to poor investment decisions.
Anchoring Bias
Anchoring bias occurs when investors rely too heavily on an initial piece of information (the “anchor”) to make subsequent judgments. This can lead to an overreliance on past reference points when making investment decisions, potentially ignoring new information. 2차전지 관련주
Loss Aversion
Loss aversion is the tendency for investors to fear losses more than they value gains. This can result in holding onto losing investments for too long or selling winning investments too early.
Strategies for Overcoming Psychological Biases
Developing a Trading Plan
Creating and adhering to a well-thought-out trading plan can help investors mitigate emotional and cognitive biases. A good plan includes clear investment goals, risk tolerance levels, and criteria for entry and exit points.
Diversification
Diversification not only reduces financial risk but can also help manage emotional risk by spreading investments across various asset classes, reducing the impact of the poor performance of any single investment.