Investing in the stock market is a strategic process, and for many the risk and reward vary depending on their previous knowledge and current understanding of market trends. However, uncertainty of the market isn’t the only thing that dictates what makes a good or bad investment decision. Our own behavior biases when it comes to finances play a major role in our gains or losses when investing in stocks. Things such as mental accounting, loss aversion, and herd behavior bias are a couple of examples in Ramsay Lewis’ article on Behavior Biases. Head over to Business Insider to read the full article, and get helpful insight on what to do, or not do when it comes to investing your funds.
-Alexandra Shuford