5 Ways Your Brain Tricks You Into Bad Investment Decisions
You are rational with your money. You spend weeks agonizing over the new microwave oven. You read countless reviews and compare features and prices. You worry about risk and insist on a good warranty. You demand value for every hard earned dollar you spend.
When it comes to buying stocks, however, the story is different. There is something about money and investing that causes temporary lapses in logic and reason. It leads you to sell at the bottom and buy at the top. It warps your perception of risk.