Broker Check

Investor Behavior

Six Barriers to Investment Success

1. Availability Bias

Learn about how watching Shark Week may increase your odds of a shark attack!... or at the very

least how that disconnect between perception and reality can effect your investing.

2. Herding

We follow the crowd because we fear making mistakes or missing opportunities, but is that really

the best method for investing? Check out the video below to learn more about the importance of leaving the herd. 

3. Loss Aversion

Every golfer knows there's a little extra pressure when hitting over the water to reach the green.

Here's a fun, two-minute video that shows how the emotions felt by golfers who've lost a ball

(or two or three) may be similar to those felt by individuals who have seen an investment take a dip.

4. Present Bias

Does a prehistoric instinct impact present-day investors? Short term rewards are often staring

us in the face, but learning to avoid the temptation of instant gratification is imperative with successful investing. 

5. Anchoring

We often focus too heavily on one piece of information when making decisions. It's important

to look at the whole picture when evaluating how you have and will perform with the market,

placing your focus on the long term goals you have set in place. 

6. Home Country Bias

Where we live often has a big influence on our everyday lives - from the foods we enjoy to the

sports teams we cheer for, we tend to prefer what's nearby.