2. Your Brain Doesn't Know How to Handle New Information

In the field of investment, you always need to keep an eye on the graph and study the market to be in green. You also need to keep your ears open to all the information running in the bourse. When you started investing, you did so as per the old analysis report you had in your hand, but the market trends changes every day. Hence if you don’t want to be overconfident then you need to anchor yourself to information and act accordingly.

3. Your Brain Is Too Focused On The Past

When you bought the stocks of a company, it showed you a good quarterly statement, and based on this you were convinced that the stocks will make you profit. This phenomenon in behavioral finance is known as representativeness that is what you think correct is actually not. Which means you went with the flow of old data provided by the company and tend not to analyze its present statements. So, you need to always tally the present records and not rely on the old ones.

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