On average, emotionally-related mistakes cost an investor a return of one to four percent per year.
(Photo: imago images/Ikon Images)
Berlin Lose weight, live healthier, do more sport. At the turn of the year, good resolutions are always very popular. A reorganization of their finances, an update on their investments or a new entry in the currently favorable stock markets are also on the agenda for some. The stock market is not magic, but new investors in particular find it easier if they know the pitfalls that their own investment behavior holds in store for them.
Because investors do not behave rationally when they make decisions. Behavioral finance has found that in most cases they are driven by emotions such as fear, overconfidence, but also greed or distorted perceptions.
The problem with this is that most people are not even aware of their distorted judgment when buying or selling stocks, funds or other assets.
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