I visualized my grief if the stock market went way up and I wasn't in it
investors fail to make decisions or take action because of the fear that they will regret it in the future. This bias is closely tied to errors
A wise man should have money in his head, but not in his heart —Jonathan Swift
For constant success, you must change with the times
So how can Status quo bias impact investors? Pompian list the following four mistakes investors can make with this bias.
Self-reverence, self-knowledge, and self-control
“Simply put, self-control bias is a human behavioral tendency that causes people to fail to act in pursuit of their long-term, overarching goals because of a lack of self-discipline
Too many people overvalue what they are not and undervalue what they are —Malcolm S Forbes
“In its most basic form, overconfidence can be summarized as unwarranted faith in one's intuitive reasoning, judgments, and cognitive abilities.
Loss Aversion Bias
Win as if you were used to it, lose as if you enjoyed it for a change. —Ralph Waldo Emerson
Recency Bias
Recency bias occurs when people more prominently recall and emphasize recent events and observations than those in the near or distant past.
Outcome Bias
“Outcome bias refers to the tendency of individuals to decide to do something—such as make an investment in a mutual fund—based on the outcome of past events (such as returns of the past five years) rather than by observing the process
Self-attribution Bias
Self-attribution bias is a long-standing concept in psychology research and refers to individuals’ tendency to attribute successes to personal skills and failures to factors beyond their control.
Availability Bias
Framing Bias
framing bias, just one more of the many ways in which our brains are biased in the way we evaluate information.
Anchoring and Adjustment Bias
When negotiating the price of an item we are often swayed when we feel we’re getting a bargain.