Investment over the years has been an effective way of generating income. An investment is a possession acquired to yield earnings in the future.
Most successful persons in the world today, have adopted the system of investment. Likewise, they understand the basics and tactics of a profitable investment.
To be a successful investor for a long period, it is important to understand and conquer common cognitive or biases that lead to bad decisions and investment errors. We are all likely to put up with shortcuts and be overconfident in our decision-making process. Better decisions can be made if cognitive biases are recognized, thereby reducing mistakes, and enhancing investment.
Going through, reviewsbird.co.uk has highlighted the cognitive biases that may lead to investment mistakes. They include;
1. Authorization predisposition
Authorization predisposition is a natural human tendency to investigate data that verifies occurring information, authorization predisposition is the main reason for investment mistakes …