Stock-picking advice, how to eliminate bias from clinical psychologist - Business Insider

Early on in his clinical practice, Crosby found his circumstances to be taxing and taking a toll on his well-being. He soon took his admiration for human behavior and focused his efforts into the "mind and markets.". "I looked at the research into investor bias and found that there are over 177 different cognitive errors that we fall prey to."

"They're not all that different," he said. "I feel like if we can develop frameworks for keeping those things in check your sort of on your way." 1. Ego The most successful investors of all time are notoriously even-keeled. They understand their risk tolerances, time horizons, and future goals. What's more, they put systems in place and strictly adhere to them.Let emotion play a big role in your investing career and there's a very good chance you'll be buying at tops and selling at bottoms, according to Crosby.Crosby says conservatism is "our tendency to be sort of lazy and prone to the status quo — and being risk-averse.

We see this notion play out when investors hold large quantities of stock options through their employer. This leads to concentration risk. Not only are they exposed to the stock, their income source is also at risk. Examples that immediately come to mind are companies like Lehman brothers and Enron.

danielcrosby Best advice is stop trying to pick stocks.

Everything I do seems negative to them yet I don't c it tht way....

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