Although we’d like to think that we are rational beings, many of our decisions are usually made with a veil of psychological bias. Here are 6 of them that you should take note of.
As the saying goes; “first impressions count.”
And that is very true. People tend to be over-reliant on their first impressions, even when they are subsequently exposed to evidence that they have been wrong. For instance, once you believe a certain business is successful, you may be inclined to believe that its stocks are an excellent investment.
That is also why many people invest in blue chip stocks without doing much research.
The best way to avoid this trap is to always keep an open mind when it comes to taking such important decisions.
Or, flip your stock picking process around by looking first at a company’s financial figures before you look at its name…