This segment was broadcast on 1 September 2016. Some information may be out of date.

How emotional thinking can get in the way of good investing

Understanding common reactions can help you guard against bad decisions. Reactions include:

  • Responding to how things are presented
  • Sticking with the status quo
  • Responding to how things are named
  • Following the crowd
  • Emotional attachment
  • Being overwhelmed with information
  • Fear of regret
  • Not considering the whole portfolio

Mary Holm is a freelance journalist, a director of the Financial Markets Authority and Financial Services Complaints Ltd FSCL, a seminar presenter and a bestselling author on personal finance. Her opinions are personal, and do not reflect the position of any organisation in which she holds office. Mary’s advice is of a general nature, and she is not responsible for any loss that any reader may suffer from following it.