{"id":901911,"date":"2013-05-08T18:25:36","date_gmt":"2013-05-08T12:55:36","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=901911"},"modified":"2013-05-08T18:25:36","modified_gmt":"2013-05-08T12:55:36","slug":"behavioral-biases-and-investment-decisions","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2013\/05\/08\/behavioral-biases-and-investment-decisions\/","title":{"rendered":"Behavioral Biases and Investment Decisions"},"content":{"rendered":"<p>Investopedia has an interesting article on the different biases that investors have. We can all empathize at some level with these:<\/p>\n<ol>\n<li><span style=\"line-height: 15px\">Overconfidence &#8211; in both the information that we have and on our ability to time the market with that information.<\/span><\/li>\n<li>Not taking losses, aka, reducing regret.<\/li>\n<li>Making the most satisfactory decision instead of\u00a0the most efficient decision.<\/li>\n<li>Chasing trends<\/li>\n<\/ol>\n<p>The best way to avoid the pitfalls of human emotion is to have trading rules. Or use algorithms like we do to make those decisions for you.<\/p>\n<p>Read the whole thing:\u00a0<a href=\"http:\/\/www.investopedia.com\/articles\/investing\/050813\/4-behavioral-biases-and-how-avoid-them.asp?partner=rss_headlines&amp;utm_source=feedly\" target=\"_blank\">4 Behavioral Biases And How To Avoid Them<\/a><\/p>\n<h6 class=\"zemanta-related-title\" style=\"font-size: 1em\">Related articles<\/h6>\n<ul class=\"zemanta-article-ul zemanta-article-ul-image\" style=\"margin: 0;padding: 0;overflow: hidden\">\n<li class=\"zemanta-article-ul-li-image zemanta-article-ul-li\" style=\"padding: 0;background: none;float: left;vertical-align: top;text-align: left;width: 84px;font-size: 11px;margin: 2px 10px 10px 2px\"><a style=\"padding: 2px;text-decoration: none\" href=\"http:\/\/bigthink.com\/insights-of-genius\/decision-making-has-its-semmelweis-now-it-needs-a-gawande\" target=\"_blank\"><img decoding=\"async\" style=\"padding: 0;margin: 0;border: 0;width: 80px\" alt=\"\" src=\"http:\/\/i.zemanta.com\/163614336_80_80.jpg\" \/><\/a><a style=\"overflow: hidden;text-decoration: none;line-height: 12pt;height: 80px;padding: 5px 2px 0 2px\" href=\"http:\/\/bigthink.com\/insights-of-genius\/decision-making-has-its-semmelweis-now-it-needs-a-gawande\" target=\"_blank\">Decision Making Has Its Semmelweis, Now It Needs a Gawande<\/a><\/li>\n<li class=\"zemanta-article-ul-li-image zemanta-article-ul-li\" style=\"padding: 0;background: none;float: left;vertical-align: top;text-align: left;width: 84px;font-size: 11px;margin: 2px 10px 10px 2px\"><a style=\"padding: 2px;text-decoration: none\" href=\"https:\/\/www.betterment.com\/blog\/2013\/04\/08\/how-behavioral-economics-can-save-you-money\/\" target=\"_blank\"><img decoding=\"async\" style=\"padding: 0;margin: 0;border: 0;width: 80px\" alt=\"\" src=\"http:\/\/i.zemanta.com\/158218476_80_80.jpg\" \/><\/a><a style=\"overflow: hidden;text-decoration: none;line-height: 12pt;height: 80px;padding: 5px 2px 0 2px\" href=\"https:\/\/www.betterment.com\/blog\/2013\/04\/08\/how-behavioral-economics-can-save-you-money\/\" target=\"_blank\">How Behavioral Economics Can Save You Money<\/a><\/li>\n<li class=\"zemanta-article-ul-li-image zemanta-article-ul-li\" style=\"padding: 0;background: none;float: left;vertical-align: top;text-align: left;width: 84px;font-size: 11px;margin: 2px 10px 10px 2px\"><a style=\"padding: 2px;text-decoration: none\" href=\"http:\/\/www.psychologytoday.com\/blog\/the-power-prime\/201304\/how-do-we-humans-ever-make-good-decisions\" target=\"_blank\"><img decoding=\"async\" style=\"padding: 0;margin: 0;border: 0;width: 80px\" alt=\"\" src=\"http:\/\/i.zemanta.com\/noimg_31_80_80.jpg\" \/><\/a><a style=\"overflow: hidden;text-decoration: none;line-height: 12pt;height: 80px;padding: 5px 2px 0 2px\" href=\"http:\/\/www.psychologytoday.com\/blog\/the-power-prime\/201304\/how-do-we-humans-ever-make-good-decisions\" target=\"_blank\">How Do We Humans Ever Make Good Decisions?<\/a><\/li>\n<\/ul>\n<div class=\"zemanta-pixie\" style=\"margin-top: 10px;height: 15px\"><img decoding=\"async\" class=\"zemanta-pixie-img\" style=\"border: none;float: right\" alt=\"\" src=\"http:\/\/img.zemanta.com\/pixy.gif?x-id=0efca899-dda4-49ee-afad-1d43fc6b7c7e\" \/><\/div>\n<p>[stockquote]SHALPAINTS[\/stockquote] <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investopedia has an interesting article on the different biases that investors have. We can all empathize at some level with these: Overconfidence &#8211; in both the information that we have and on our ability to time the market with that information. Not taking losses, aka, reducing regret. Making the most satisfactory decision instead of\u00a0the most &hellip; <\/p>\n","protected":false},"author":2,"featured_media":902031,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[1591],"class_list":["post-901911","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-your-money","tag-introduction","entry"],"_links":{"self":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/901911","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/comments?post=901911"}],"version-history":[{"count":0,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/901911\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media\/902031"}],"wp:attachment":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media?parent=901911"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/categories?post=901911"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/tags?post=901911"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}