~ C-IDPIPATES-IOLATBP ~ Compartmentalizing – Investors Divide Problems Into Parts And Treat Each Separately – Instead Of Looking At The Big Picture
~ TF-EFCCTTFB-B-WTMIGD-PEITSD-A-WIIGU-TSITL ~ Trend Following – Extrapolating From Current Conditions Tends To Fuel Bubbles – Because – When The Market Is Going Down – People Expect It To Stay Down – And – When It Is Going Up – The Sky Is The Limit
~ LA-PTL-PIW-TD-TTD-PIL-TSA ~ Loss Aversion – People Take Less – Pleasure In Winning – Ten Dollars – Than They Do – Pain In Losing – The Same Amount
~ D-IMBEITAAOWTE-TRI-CD ~ Denial – Investors Maintain Beliefs Even If They Are At Odds With The Evidence – This Results In – Cognitive Dissonance
~ S-IAOIBT-OOO ~ Suggestion – Investors Are Overly Influenced By The – Opinions Of Others
~ SQB-ITTAC ~ Status Quo Bias – Investors Tend To Avoid Change
~ IC-ILFPWTDE-TIAC-S ~ Illusory Correlations – Investors Look For Patterns Where They Don’t Exist – This Is Also Called – Superstition