Impulsive behavior may manifest itself in spontaneous trips and purchases; for others it could include verbal aggression or risky sexual behaviors. Impulsive decisions by investors can lead to costly buying or selling regrets. Experts share tips for avoiding making such emotional choices in the first place; beginning by recognizing your triggers. 1. Overconfidence Overconfidence bias is a cognitive distortion that frequently plagues professionals and investors, manifesting itself through an exaggerated sense of their abilities, performance, or control which leads to risky decisions. People may demonstrate this bias in various forms…
Read MoreThe Risks of Betting on Emotion: How to Avoid Making Impulsive Decisions
