The Silent Thief: Your Emotions
The stock market is an instrument to transfer money from the impatient to the patient. However, humans are biologically programmed to avoid pain and seek rewards.
Cognitive Biases
- Loss Aversion: The pain of losing $100 is twice as strong as the joy of gaining $100.
- Confirmation Bias: The search for news that supports our existing beliefs.
- FOMO: The "fear of missing out" on the latest trends.