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Cognitive biasness cloud your Investment decisions
By Theory of Constraints  •  November 16, 2019
A normal person makes thousands of ‘rational’ decisions on a daily basis – or so we want to believe in. From what clothes you wear to work to signing a million dollar contract, there are countless cognitive stumbling blocks preventing us from acting in our own best interests. Some are sub-conscious – we don’t realise it till we look back after this article. To bring it back to perspective, many of the biasness illustrated are highly applicable to our investment decisions. There are no bad trades, only bad decisions. There are probably many more biasness, but let us take a look at some of the more common ones. It brings us to the most important point which is point (4.) Blind-spot bias, which is failing to know thyself. You are your own worst enemy, and paradoxically your greatest friend. Self-sabotage is a subtle and insidious process....
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By Theory of Constraints
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