One: Herd effect
It means that in an investment group, a single investor always acts according to the actions of other investors, buying when others buy and selling when others sell. This is actually what we usually call herd mentality.
Many people like to follow other people's ideas when investing, and they have no own opinions at all. When others say which fund is good, they think it is good, but after buying it, they usually face: when you buy it, it is almost the best time to rise, so after buying it, you will face a high probability of falling, and then you can't stand it and redeem it, but at this time, the fund starts to rise again.
Second: Emotion-driven trading
It is a frequent buying and selling operation in a short period of time.
Pay attention to the change of fund net value every day. Redeem when the net value falls, and apply for redemption when it rises. Frequent trading is not only difficult to make money, but also puts investors under great pressure in investment.
Always staring at the account to see the ups and downs has a great influence on the mentality. If the market is a little restless, it will easily lead to chasing up and down, and it is impossible to make rational choices.
Three: Ducker effect
A cognitive bias, overestimating one's ability level and making wrong decisions.
Investors are too confident in their investment and think that they have super timing ability and can predict market trends. But no one can be absolutely right.
A good practice is to insist on the long-term fixed investment of the fund and not to operate at will.