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By Callie Cox, senior investment strategist for Ally Invest
Stocks have calmed down over the past few weeks as temperatures rise and trading volumes drop. But just because
markets are on a little spring break doesn’t mean you have to be.
Quiet periods are the perfect time to strengthen your mental game. A lot of investing is about controlling your
emotions and biases, believe it or not. And let’s face it: Hubris seems to be at an all-time high these days, along with prices in most markets.
This week, we’ll look at the Dunning-Kruger Effect and how an imbalance of competency to confidence could sabotage your investing success.
StreetAuthority
February 19, 2021
I was sifting through financial twitter, or “Fintwit”, as it’s known, and came across an interesting post. It posed a question along the lines of “what’s your biggest investing/trading mistake?”
As you may know, I’m fascinated by these kinds of questions. I believe that our investing behavior affects our performance much more than people realize. So wanting to see the responses, I clicked to view the comments. I thought I had an idea of what people would say. But honestly, the answers shocked me.
Nearly all the “mistakes” that people posted were along the lines of booking profits too soon or “should have held on to XYZ stock longer”.
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