With the market in flux, it’s important to think rationally and practice patience. To accomplish that, here are 10 phrases you should NOT be telling yourself:
- I got a great stock tip from a friend of a friend.” – Herding
- “This time is different.” – New Era Thinking
- “I should have seen the crisis coming.” – Hindsight Bias
- “I check my account on the hour.” – Myopic Loss Aversion
- “This is can’t miss!” – Overconfidence
- “It just feels right.” – Affect Heuristic
- “…but Jim Cramer said…” – Appeal to Authority
- “Rebalance? Why bother?” – Status Quo Bias
- “I’m on a hot streak right now!” – Gambler’s Fallacy
- “I can always start saving later.” – Hyperbolic Discounting
(Note: The above is a re-post from the Brinker Capital Blog)
