Joe Edgeworth
The Edgeworth Insurance Group
5 Mistakes Investors Make When They Fail to Keep Their Cognitive Biases in Check
A cognitive bias refers to how our experiences and preferences distort our judgments and decisions. For example, when deciding whether to buy a new car, we might focus on the positive aspects of the vehicle (the safety features, the comfortable seats) and downplay the negative aspects (the high price tag, the small trunk). This tendency to over-emphasize the good and ignore the bad is known as confirmation bias, leading to poor decision-making. However, by being aware of our various biases, we might help to overcome them and make better financial decisions.
- Riding that high
- Valuing facts we "see" and "feel" more than "abstract" facts
- Valuing the latest information most
- Being overconfident
- The herd mentality

Joe Edgeworth
The Edgeworth Insurance Group
2715 Spring Valley Rd.
Lancaster, Pennsylvania 17601
joe.edgeworth@retirevillage.com
(800) 824-8609


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