What are the mistakes the investors do in the market?

What are the mistakes the investors do in the market?

Traditional economic theory is based on the idea that investors make rational decisions. However, humans are emotional beings, which means investment decisions can sometimes be driven by emotional factors.

Indeed, the latest Capgemini World Wealth Report 2024 discovered that 65% of high net worth individuals are influenced by behavioral finance biases when making investment decisions—especially during emotional life events such as marriage, divorce and retirement.

Throughout their lifetime, investors make many decisions including whether to buy physical gold and silver or rare coins, real estate, stocks and bonds and in what proportion to each other, or allocation levels.

Emotional investment decisions can have a long-lasting impact on your financial goals and your financial security. Do you recognize any of these six investment biases, which Capgemini found impact high net worth individuals (HNWI)?

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