Identifying and Overcoming Investor Biases
Investing is an emotional practice, especially during volatile times. When markets are volatile, many investors can experience a range of emotions, from euphoria to panic, often in quick succession. During periods of uncertainty, the tendency to act on emotion is higher, potentially leading to investing missteps (for example, panic selling or trying to time the market). That’s why it is important to examine your natural inclinations when formulating long-term plans or selecting investments.
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