Common biases of investors that can impact their investment decisions

Personal Finance

Confirmation bias is the tendency to seek out and give more weight to information that confirms one's existing beliefs.

Anchoring bias is the tendency to rely too much on the first piece of information that is received when making decisions. 

Mental accounting is the tendency to treat money differently based on its source or intended use, rather than treating all money as equal. 

Recency bias is the tendency to give more weight to recent events and to assume that they will continue to occur in the future.

Hindsight bias is psychological phenomena where an investor is convinced that he predicted an event long before it occurred. 

 Sunk Cost Fallacy is a behavioral bias that acts as a roadblock when we have invested a lot of money into a stock. 

It is important to check if any of the above biases is letting you hold on to a certain investment even when the actual information states otherwise.