Even if you’re new to the stock market, most investors can identify several core tenets, such as buy low/sell high, diversify your portfolio, don’t time the market and stay disciplined.
Though these principles seem rational and intuitive, millions of investors get them wrong every year. The reason is simple: Investing is inherently emotional. We invest to grow our wealth and provide for ourselves and our families. When the markets become volatile, the primitive parts of our brains kick in, and we react like our Neanderthal cousins being hunted by a hungry saber-toothed tiger.
