심플 이즈 베스트

Success in investing requires logical and objective decision-making. However, the human brain is not always rational. **Cognitive biases**, which are systematic errors in thinking, often lead to predictable mistakes that erode investment returns. This article explores different types of cognitive biases, their effects on investment decisions, and strategies to overcome them. --- ## **What Are Cognitive Biases?** Cognitive biases are irrational errors in judgment that occur when processing information or making decisions. They arise as the brain simplifies complex data or makes quick judgments. In investing, cognitive biases often lead to emotional or intuitive decisions, ignoring objective data. --- ## **Common Cognitive Biases in Investing** ### 1. **Confirmation Bias** This bias leads individuals to focus only on information that supports their existing beliefs while ignoring contradictory evidence. - **Example**: Believing a stock will rise and only paying attentio...