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
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Mary Holm is a freelance journalist, a director of Financial Services Complaints Ltd (FSCL), a seminar presenter and a bestselling author on personal finance. From 2011 to 2019 she was a founding director of the Financial Markets Authority. 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.