7 reasons why you made less than the market
- Investors are unskilled
- The more you look at your portfolio, the more you’ll trade
- Having no plan
- Performance chasing
- Overconfidence
- Portfolio dissecting
- Short-termism
From USA Today:
5 brain flaws that make you a lousy investor
- Trading bias.
- Recency effect.
- Sunk cost fallacy.
- Overconfidence effect.
- Prospect theory or “framing”.
From Money magazine:
3 Bad Reasons We Pay So Much For Mutual Funds
- Using an active fund as a de facto financial adviser.
- Going active to get a tilt.
- That enterprising feeling.
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