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Your own brain may be sabotaging attempts to make rational investment decisions.

There are more than a dozen cognitive biases that have an affect on business and investing decisions, says Business Insider.

Read: Preventing mistakes with behavioural finance

For instance, confirmation bias means people pay more attention to information that upholds their views, rather than giving equal weight to information that doesn’t fit their ideas.

There’s also the clustering illusion, which is being prone to see patterns in unrelated events. Other biases include the ostrich effect, outcome bias and survivorship bias.

And now that you know about them, you’re already weakening an inherent bias. Not acknowledging that you have cognitive biases is a bias in itself, says BI.

Read more about them here.

And we have more on behavioural finance:

Strengthen client relationships

Nobel Prize honours conflicting theories

A third dimension of risk

Originally published on Advisor.ca

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