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7 mental traps to avoid when you’re investing
This episode was originally part of the Market Memo newsletter, where you learn about sharemarket investing every week. You can subscribe to that, here https://marketmemoweekly.substack.com/
It’s never been easier to start investing. And that’s both brilliant, and part of the problem.
Between constant headlines, market swings, hot takes on social media, and apps that let you trade with a swipe, investing has turned into a psychological minefield.
Now, for most people, the biggest risk to their money isn’t the market. It’s their own brain.
In this episode of Making Cents, it’s the seven common mental traps that trip investors up.
We’ll cover:
Why losses hurt so much more than gains (and what that makes people do)
How herd behaviour and FOMO sneak into otherwise sensible decisions
Why sticking to what feels familiar can cost you real growth
The mental shortcuts that make short-term noise feel more important than long-term plans
And the simple systems that help emotions stop driving the car
This episode isn’t about suppressing your feelings or becoming some emotionless investing robot.
It’s about understanding how your brain works, and putting smart guardrails in place so it doesn’t sabotage your future.
Follow me everywhere!
Facebook / https://www.facebook.com/FrancesCookNZ
Instagram / https://www.instagram.com/francescooknz
TikTok / https://www.tiktok.com/@francescooknz
Join the Money Memo newsletter for a free weekly money tip in your inbox each week https://www.francescook.co.nz/subscribe
This podcast was filmed & produced by Fanaticals
Video editing & content production by Lana Byrne
Audio engineering by Tash Chittock
#MakingCents #FrancesCook #InvestingPsychology #BehaviouralFinance #MoneyPsychology #InvestorMindset #MentalTraps #Investing
Chapters- 00:00:00 Introduction
- 00:02:18 Loss aversion: the pain hits harder than the pleasure
- 00:03:31 Overconfidence bias: the 'I can time the market' illusion
- 00:05:21 Herd behavior and FOMO: when everyone's buying, beware
- 00:07:13 Home bias: comfort can cost you
- 00:08:31 Confirmation bias: the echo chamber effect
- 00:09:39 Recency bias: thinking yesterday predicts tomorrow
- 00:10:48 Present bias: the 'now' trap
- 00:12:19 Wrapping up: stop emotions from driving the car
- 00:13:00 Outro
View all episodes
By Frances CookThis episode was originally part of the Market Memo newsletter, where you learn about sharemarket investing every week. You can subscribe to that, here https://marketmemoweekly.substack.com/
It’s never been easier to start investing. And that’s both brilliant, and part of the problem.
Between constant headlines, market swings, hot takes on social media, and apps that let you trade with a swipe, investing has turned into a psychological minefield.
Now, for most people, the biggest risk to their money isn’t the market. It’s their own brain.
In this episode of Making Cents, it’s the seven common mental traps that trip investors up.
We’ll cover:
Why losses hurt so much more than gains (and what that makes people do)
How herd behaviour and FOMO sneak into otherwise sensible decisions
Why sticking to what feels familiar can cost you real growth
The mental shortcuts that make short-term noise feel more important than long-term plans
And the simple systems that help emotions stop driving the car
This episode isn’t about suppressing your feelings or becoming some emotionless investing robot.
It’s about understanding how your brain works, and putting smart guardrails in place so it doesn’t sabotage your future.
Follow me everywhere!
Facebook / https://www.facebook.com/FrancesCookNZ
Instagram / https://www.instagram.com/francescooknz
TikTok / https://www.tiktok.com/@francescooknz
Join the Money Memo newsletter for a free weekly money tip in your inbox each week https://www.francescook.co.nz/subscribe
This podcast was filmed & produced by Fanaticals
Video editing & content production by Lana Byrne
Audio engineering by Tash Chittock
#MakingCents #FrancesCook #InvestingPsychology #BehaviouralFinance #MoneyPsychology #InvestorMindset #MentalTraps #Investing
Chapters- 00:00:00 Introduction
- 00:02:18 Loss aversion: the pain hits harder than the pleasure
- 00:03:31 Overconfidence bias: the 'I can time the market' illusion
- 00:05:21 Herd behavior and FOMO: when everyone's buying, beware
- 00:07:13 Home bias: comfort can cost you
- 00:08:31 Confirmation bias: the echo chamber effect
- 00:09:39 Recency bias: thinking yesterday predicts tomorrow
- 00:10:48 Present bias: the 'now' trap
- 00:12:19 Wrapping up: stop emotions from driving the car
- 00:13:00 Outro