Psychological traps when making investment decisions and how to avoid them
Research into behavioural finance has arrived at the conclusion that investors are only partially able to act rationally. Frequently when making investment decisions they are prone to various errors and distortions of judgement.
We have summarised the most widespread problems for you. Prior to making an investment decision, make yourself aware of these problems to at least mitigate severe errors of judgement, or in the ideal case, to avoid them altogether.