Behavioral Bias Detection in Investing

Assess Your Investing Habits

Answer the following questions honestly to help identify potential behavioral biases in your investment decisions.

1. How would you rate your ability to pick winning stocks compared to other investors?

2. After a period of successful trades, are you more inclined to increase your trading frequency or position sizes?

3. When researching an investment idea, do you primarily seek out information that supports your initial opinion?

4. If a news report contradicts your investment thesis, how do you typically react?

5. You hold a stock that has fallen significantly. Are you more likely to hold onto it, hoping it will recover, rather than selling to cut losses?

6. The pain of losing $100 feels more intense than the joy of gaining $100.

7. If a particular stock or sector is highly discussed and recommended by friends, online forums, or news, are you more likely to invest in it without extensive personal research?

8. During a market downturn, do you feel pressured to sell your investments because "everyone else is selling"?

9. When considering selling a stock, do you often focus on its original purchase price, rather than its current fundamental value?

10. You saw a stock trading at $100 a few months ago. It's now $70. Do you perceive it as "cheap" or "a good buy" primarily because it's lower than $100?

11. After hearing about a major market crash or boom, does it significantly influence your immediate investment decisions?

12. Do you give more weight to the performance of a fund or stock from the last 1-2 years than its long-term (5+ years) historical performance?

13. When you have a winning investment, are you quicker to sell it to "lock in gains" than you are to sell a losing investment?

14. Do you tend to postpone selling losing investments, hoping they will recover to your purchase price?

15. How often do you review and make adjustments to your investment portfolio (e.g., rebalancing, changing asset allocation)?

16. You've held a particular investment for a long time. Even if new, better opportunities arise, are you reluctant to sell it and invest elsewhere?

Behavioral Bias Detection in Investing

Assess Your Investing Habits

Your Behavioral Bias Assessment