3 Cognitive Biases That Make You Lose Money in the Stock Market (and How To Avoid Them)

#1: Loss aversion, when avoiding risk means losing every time.

As an investor, I'm sure you've felt like you've made a bad investment. On the other hand, you've had a feeling of euphoria that you've just made a great decision for your money.

This is all normal. In the stock market, your feelings will be tested both ways. This affects both novice and more seasoned investors.

Behavioral finance research has shown that …