02-12-2021, 06:48 AM
The 6 Biggest Pitfalls for Investors & How to Avoid Them
<!-- SC_OFF --><div class="md"><p>Hey fellow savvy investors, I wanted to share a <a href="https://www.fidelity.com/viewpoints/personal-finance/financial-improvement">great article</a> that I just read that I thought could help out many of you, especially those who have just started getting into investing. Kudos to you on educating yourselves and working towards a brighter future.</p> <h2>Key takeaways</h2> <ul> <li>Natural human instincts often undermine our success as investors.</li> <li>Common pitfalls include aversion to loss and ambiguity, following the crowd, and focusing on information that's recent or confirms what we already believe.</li> <li>Antidotes include seeking out alternative information, doing your research, and developing a long-term financial plan that you can stick with.<br/></li> </ul> <ol> <li>Avoid losses at all costs: Loss aversion2."I am the greatest!" Confirmation bias</li> <li>Getting stuck on the first thing you see: Anchoring bias</li> <li>The breaking news problem: Recency bias</li> <li>There's safety in numbers ... right? Herding bias</li> <li>The devil you know: Ambiguity aversion</li> </ol> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/gentwithin"> /u/gentwithin </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/li4koj/the_6_biggest_pitfalls_for_investors_how_to_avoid/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/li4koj/the_6_biggest_pitfalls_for_investors_how_to_avoid/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>Hey fellow savvy investors, I wanted to share a <a href="https://www.fidelity.com/viewpoints/personal-finance/financial-improvement">great article</a> that I just read that I thought could help out many of you, especially those who have just started getting into investing. Kudos to you on educating yourselves and working towards a brighter future.</p> <h2>Key takeaways</h2> <ul> <li>Natural human instincts often undermine our success as investors.</li> <li>Common pitfalls include aversion to loss and ambiguity, following the crowd, and focusing on information that's recent or confirms what we already believe.</li> <li>Antidotes include seeking out alternative information, doing your research, and developing a long-term financial plan that you can stick with.<br/></li> </ul> <ol> <li>Avoid losses at all costs: Loss aversion2."I am the greatest!" Confirmation bias</li> <li>Getting stuck on the first thing you see: Anchoring bias</li> <li>The breaking news problem: Recency bias</li> <li>There's safety in numbers ... right? Herding bias</li> <li>The devil you know: Ambiguity aversion</li> </ol> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/gentwithin"> /u/gentwithin </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/li4koj/the_6_biggest_pitfalls_for_investors_how_to_avoid/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/li4koj/the_6_biggest_pitfalls_for_investors_how_to_avoid/">[comments]</a></span>Kind Regards R