We all use instincts for decision-making, but doing that with your investment portfolio could prevent you from realizing more consistent, dependable results.
In this video, Behavioral Scientist Dr. Nina Mazar discusses how your unconscious mind influences your investment decisions and makes you prone to four common biases:
- Overconfidence can lead you to underestimate risk.
- Aversion to loss can cause you to miss suitable opportunities because the feeling of past pains is twice as strong as the joy of gains.
- Anchoring is when you place too much value on specific information, such as a stock’s most recent high.
- Pattern-seeking behavior sometimes results in believing you can predict the market’s ups and downs.
Watch the video now for ways to overcome these biases. Your Ameriprise advisor is here help you reflect on your investing style, make more informed decisions and stay focused on your long-term investment strategy.