6. Costly Investing Biases and How to Avoid Them

A rational investor maximizes his wealth within the constraints of his risk tolerance. Most investors are not rational – they’re driven by greed, hope, fear. That is, they’re human.

To invest smartly and avoid loses money unnecessarily, you need to learn how to manage the natural weaknesses in your psychology. This episode explores 5 common biases that plague investors. It also explores how to mitigate the risk of falling victim to these biases.

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