When Emotions Hijack Your Investment Returns
There's a paradox at the heart of investing that costs people millions: their investments often perform far better than they do. An investment strategy might beat the market by 3% annually, yet the average investor in that strategy loses money. The culprit? Emotions. Fear is a powerful force. It whispers in our ears during market volatility, urging us to abandon our strategy at precisely the wrong moment. It convinces us that this time is different—that the rules we established in calmer moments no longer apply. It transforms a rational investment process into an emotional roller coaster where we buy high [...]