Emotions can drive poor investment decisions from "summary" of Random Walk Guide To Investing by Burton G Malkiel
Investing decisions can often be heavily influenced by our emotions. When it comes to managing our money, fear and greed can cloud our judgment and lead us to make poor decisions. These emotions can cause investors to panic and sell their assets when prices drop, or to become overly optimistic and buy more when prices rise. For example, during a market crash, fear can drive investors to sell their investments at a loss in a panic, instead of holding onto them and waiting for the market to recover. On the other hand, during a bull market, greed can lead investors to chase after hot stocks or assets without considering the underlying fundamentals, which can result in them buying at inflated prices. Emotions can also cause investors to ignore their long-term financial goals and focu...
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