Behavioural Biases
The mental shortcuts that helped our ancestors survive and quietly cost you money.
Lessons
- Why Your Brain Is Bad at MarketsThe instincts that kept us alive on the savanna are precisely wrong for investing. Meet your opponent: you.
- Loss AversionA loss hurts about twice as much as the same gain feels good — and that asymmetry warps every decision.
- AnchoringWhy the price you paid haunts every later decision, even when it is utterly irrelevant.
- Recency BiasWe assume the recent past will continue — buying tops and selling bottoms on autopilot.
- Confirmation BiasSeeking only the news that agrees with our position — how to deliberately seek the opposite.
- Herding & FOMOThe crowd feels safe and is often most dangerous at the extremes. Why everyone being in is a warning.
- OverconfidenceThe more we know, the more we overestimate our edge. The bias that makes people overtrade.
- The Sunk-Cost FallacyHolding a loser because you have "already lost so much" — throwing good money after bad.