Blog Profile: The Psy-fi Blog, A Sideways Look at Psychology and Finance

A brazen no holds bars blog whereby the author highlights various behavourial biases of our financial markets and its participants.

Some common behavourial bias he notes are

1) Overconfidence and Over Optimism (We think that we are of above average ability and therefore will make more money compared to the average investor.)

2) Hindsight Bias (a believe that the event that we witness earlier was predictable than before it took place, for instance we think we can sidestep a financial crisis.)

3) Loss Aversion (we tend to more risk averse when protecting gains compared to chasing our recovering our losses, for instance we poorly manage risk when our portfolio head south and we are quick to take profits when  we see them.)

4) Regret (you regret missing a market surge? or have you ever regretted buying a particular stock that is going south?) Read more of this post