Home / Resources / Knowledge Base / Investing Psychology Investing Psychology The biases that cost investors more than any recession, and the habits that keep you rational when it matters.
The biggest threat to your returns is usually the person holding the account. These guides name the biases that cost investors the most, fear, greed, overconfidence, anchoring, and lay out the habits that keep you rational when the market is not.
8 articles in this module
Fear and Greed in Investing: The Two Master Emotions Fear and greed drive the market cycle and push the crowd to be most wrong at the extremes. Learn how the two emotions work and the habits that keep you rational. 8 min read Confirmation Bias: Seeing Only What You Want to See Confirmation bias makes investors collect evidence that agrees with them and ignore the rest. Learn how it hides risk, with a defense: write the bear case yourself. 6 min read FOMO in Investing: The Fear of Missing Out FOMO in investing makes you chase what has already soared and buy near the top. Learn how the fear of missing out works and a rule that keeps you out of the trap. 6 min read Overconfidence Bias: Why Investors Trade Too Much Overconfidence bias makes investors overrate their skill, trade too often, and bet too big. Learn how it shows up and a defense: track your record and base rates. 7 min read Anchoring Bias: When a Number Traps Your Judgment Anchoring bias ties investors to an irrelevant number, usually a past price, and warps their decisions. Learn how it works and a defense: value the business first. 7 min read Emotional Investing: Why Rules Beat Willpower Emotional investing means letting fear and greed drive your decisions, and it quietly costs more than any recession. Learn why rules, automation, and checklists win. 7 min read Staying Rational During Market Crashes Market crashes feel like the end of the world from inside them. Learn what protected investors in documented crashes, and how to write a crash plan in advance. 8 min read Patience as an Investing Edge: Time Arbitrage Patience is the last durable edge left to the individual investor. Learn how time arbitrage beats institutional short-termism, and how to hold through the noise. 8 min read Data from Intrinio and Financial Modeling Prep.