Cognitive biases

· Loss aversion: There is a strong preference for avoiding losses. That is, not losing money is far more important than making money.

· Sunk cost effect: Pay more attention to money that has already been spent than to money that may be spent in the future.

· Disposition effect: Cashing in profits early and letting losses continue.

· Outcome bias: Judging the quality of a decision only by its results, without considering the quality of the decision itself.

· Recency bias: Pay more attention to recent data or experience and ignore earlier data or experience.

· Anchoring effect: Over-reliance on (or anchoring) easily accessible information.

· Bandwagon effect: Blindly believe in something just because many other people believe it.

· Law of small numbers: Drawing unfounded conclusions from too little information.