We firmly believe we are perfect employees, perfect citizens, perfect parents, perfect spouses, perfect drivers, and, of course, perfect investors. Many invest when past returns have been high, not realizing that at that juncture, it’s the risk that’s high, not return potential. Some will not only forward these messages to friends, but also invest money based on such overconfidence. Wise, good advisers and money managers will never be overconfident. This will help you get a balanced perspective for decision-making and avoid losses due to a one-sided, overconfident view.

Source: Mint July 05, 2021 20:26 UTC