Episode 29: Investor Psychology

Investing can be an emotional game. There are behavioral and mental biases that affect people's reactions to investing. In this episode, I dive into the psychology behind making investing decisions. Emotional reactions to the stock market can cost you in the long run.

Highlights:

• Behavioral Biases Affect Decisions

• Understanding Psychology Helps Manage Risk
• If you understand how others might react emotionally, you can make more strategic moves—like buying when others are fearful or selling when things feel too euphoric.
• Stay rational during market swings.

• • Stick to your long-term plan instead of making emotional moves.

Even though we like to think markets are rational and efficient, they're actually shaped by human emotions—like fear, greed, and excitement. This means:

• People might panic-sell during a market dip.

• Or chase trends when something's booming, creating bubbles.

Enjoy the episode!