Behaviour

• AnchoringFixating on an irrelevant reference point, usually the price you paid.
• BubbleA price rise driven by expectations of further rises rather than by underlying value.
• Circle of competenceThe set of things you genuinely understand well enough to judge.
• Confirmation biasSeeking and believing information that supports what you already think.
• Decision journalA written record of what you decided, why, and what would prove you wrong.
• Disposition effectSelling winners too early and holding losers too long.
• Fear of missing outBuying because something is rising and others are profiting, rather than because of any analysis.
• HerdingFollowing what others are doing rather than reaching your own conclusion.
• Hindsight biasBelieving after the fact that an outcome was obvious all along.
• Loss aversionThe tendency to feel a loss roughly twice as intensely as an equivalent gain.
• Mr MarketA parable describing the market as a moody business partner who quotes a different price every day.
• Myopic loss aversionTaking too little risk because you evaluate a long-term portfolio over short periods.
• Outcome biasJudging a decision by how it turned out rather than by whether it was well made.
• OverconfidenceSystematically overestimating your own knowledge, judgement and probability of being right.
• Recency biasGiving too much weight to what happened recently when forecasting what happens next.
• Sunk cost fallacyContinuing with something because of what you have already put in, rather than what lies ahead.

Educational reference only. Nothing here is investment advice or a recommendation to buy or sell anything, and tax treatment depends on your own circumstances and the country you are in.