There are always a lot of misconceptions about investing and I believe the reason is because our brains were not wired to do investing properly. Well, our ancestors survived by running away from tigers and living cooperatively in a group, and not to analyse an investment logically.
We are full of biases – overconfidence, availability, anchoring, mental accounting, loss aversion and more. Read here and here.
Sometimes it is hard to know if we are falling into biases or disadvantageous thinking when we think about our investments. So I would like to highlight 3 common things said by investors and explain why I think they are problematic.
“I don’t want to invest now because the market is too high. I will buy when it crashes.”...