Behavioral Bias

Glossary

Behavioral Bias

The tendency to make decisions based on emotions or cognitive errors rather than objective data. These biases can cause you to buy high or sell low – resulting in losses or below-average returns. See Action Bias, Anchoring Bias, Availability Bias, Catastrophizing Bias, Compartmentalizing Bias, Confirmation Bias, Endowment Bias, Framing Bias, Herd Mentality Bias, Hindsight Bias, Illusion of Attention Bias, Illusion of Control Bias, Intuition Bias, Mental Accounting Bias, Optimism Bias, Overconfidence Bias, Pattern Recognition Bias, Pessimism Bias, Proud Papa Bias, Recency Bias, Regret Avoidance Bias, Small Sample Size Bias, Status Quo Bias