4. Your Brain Doesn't Like To Lose

What commonly known as ‘Loss Aversion’ or not accepting that fact that even you can lose can be risky. For example, one of your nest eggs is be down by 20 per cent for some good reason. What you need to do is just let it go, book the loss and move on. However, you can always wish that your stock might comeback, but this thinking can be dangerous as in such cases, more often the results are negative and you end up losing your money.

5. Your Brain Remembers Everything

Most of the time, how you invest in future depends on the outcomes of the previous trades. For example, you sold a stock with a 20 percent profit, but after selling it rose and made huge profits. You brain will make you think “only if I had waited a little more and kept a hold on it”. Similarly in a vice versa case, you regret why you didn’t sell it, when you could. All these will lead to an obnoxious feeling of regret. If you sit and waste your time regretting, it will not do any good to you. On the other hand, if you stop investing as you don’t want to regret in future will block the way of making money. So forget the past, accept it as a part of your experience and move on.

Also Read: 7 Reasons That Prompt You To Switch Banks