Cognitive Bias Series Part 1: Anchoring Bias & Recency (Availability) Bias

In this mini-series, we are going to talk about five cognitive biases and how they affect us in our financial decisions. Anchoring Bias refers to when a person latches onto the first piece of information they see or hear and end up being an "anchor" for new information that follows. Nathaniel mentioned how that effects him then it comes to investing in the stock market. To combat this bias: analyze historical data, but don't hold onto those historical conclusions. As o...