Even the smartest people make judgm

Even the smartest people make judgment mistakes and havebehavioral biases. Investors put their decisions through various filtersresulting from their own experience that sometimes make thembiased.1 They can easily become prey to those wanting to takeadvantage of them because of their own vulnerability and naiveté.Behavioral biases are classical forms of dysfunctional psychologydirectly applied to the investment area. Understanding howand why investors make decisions is fascinating and complexbecause irrationality and bias can lead to making decisions that107are difficult to explain in hindsight. Successful investors are mastersof personal psychology. Although investors can’t control themarket, they can exert control over themselves.