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Stock market: when our emotions make us lose money

2021-06-23T17:56:57.068Z

DECRYPTION - Errors related to behavioral bias would cause scholarship scholars to lose 5% of their returns each year.



The stock market euphoria of recent months has brought on the markets a huge influx of neoboursicoters, nearly 400,000 in one year, according to the Autorité des marchés financiers (AMF).

These newcomers took advantage of the huge rebound that followed the pandemic.

Those who have bitten the hook are here to stay.

But after the early sprint, comes the long-distance race, the gains are made in the long term.

And in this game, you have to be careful not to be fooled by your emotions.

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How the crisis created a new generation of French scholarship holders

Because on the stock market as elsewhere, affects play tricks on us.

And make us lose money.

The Dalbar firm has calculated that the psychological flaws of American stock marketers - fear, overconfidence, or tendency to overinterpret information - have cost them no less than 5% return per year over thirty years

.

Whichever time period you choose, investors consistently do worse than the US benchmark, the S&P 500, according to Dalbar.

In principle, investing in the stock market is simple.

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Source: lefigaro

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