12 Cognitive Biases That Endanger Investors

Presented by Mark Phillips

Prior to creating the blog site Minyanville, Todd Harrison was an options trader at Morgan Stanley, and then President of Cramer Berkowitz, where he worked as head trader at Jim Cramer’s hedge fund. Todd has an interesting and quite often unique way of seeing and explaining the world of finance and investing. He has compiled a complete list (at least it seems to me as per my own Confirmation bias) of the 12 unique dangers in thought/behavior to investors.

Here is the full list:

1.      Confirmation Bias

2.      In-Group Bias

3.      Gambler’s Fallacy

4.      Post-Purchase Rationalization

5.      Neglecting Probability

6.      Observational Selection Bias

7.      Status-Quo Bias

8.      Negativity Bias

9.      Bandwagon Effect

10.  Projection Bias

11.  The Current Moment Bias

12.  Anchoring Effect

 

Check out his explanation and descriptions at: 
12 Cognitive Biases That Endanger Investors