Behavioral finance isn’t just an academic buzzword, it’s the science of how our psychology quietly sabotages our money decisions. After a few years of trading, I’ve realized that the biggest risk to my portfolio isn’t the market itself — it’s me. No matter how many books I’ve read or charts I’ve studied, certain behavioral traps keep slipping through the cracks of my rational mind. The truth is, even smart traders fall prey to predictable mental biases and I’ve experienced all three: getting stuck in my own head, misreading information, and letting emotions drive the wheel. 1. Getting Stuck in My Own Head (Cognitive Rigidity) One of the strongest behavioral traps I face is cognitive rigidity, or simply being too stubborn to change my mind when reality shifts. In behavioral finance, this cl

$Tiger Brokers(TIGR)$ I watched my favorite tech stock soar, heart racing.  I can't miss out, I told myself, buying more at the peak. Weeks later, the price crashed - panic replaced excitement. Fear drove me to sell at a loss, only to watch the stock rebound days later. It wasn't the market that beat me - it was my emotions. I learned that controlling feelings of greed and fear was more profitable than any hot stock tip ever could be.

$TENCENT(00700)$  $Direxion Daily Regional Banks Bull 3x Shares(DPST)$  

Controlling emotion is something that have to be learned 

I did a rough tabulation (not perfectly apples-to-apples—some foreign stocks, some recent buys and trims) but good enough for an estimate. Below is the table of the stock returns in Berkshire’s portfolio: Buffett famously avoids tech. He sticks to what he understands—consumer brands like Coca-Cola, American Express, and Kraft Heinz. And as we’ve discussed in a previous post, non-AI stocks have had a rough year, so it’s no surprise Berkshire’s portfolio underperformed the tech-dominated S&P 500. I doubt it’s because Buffett is predicting a crash. He’s never cared about timing markets. He’s repeatedly said he doesn’t invest based on forecasts. One possible reason: succession planning. Buffett may be clearing the slate for Greg Abel and the investment managers to build their own portfolio

Hard to take the emotion out of trading. especially when you see the red numbers

$Tiger Brokers(TIGR)$  [Miser]  

$Tiger Brokers(TIGR)$ Number 1. Always stuck with own head. [Facepalm]  

🌟🌟🌟I fell hard for Trap #1 Cognitive Rigidity. Top Glove $Top Glove(BVA.SI)$ was my lesson.  I had a stubborn belief that Top Glove was essential. Pandemic or not, rubber gloves were a necessity.  I ignored the signs: Oversupply, collapsing selling prices & the labour investigations. I misread the news : Earnings miss?  Temporary.  Downgrade? Overreaction.  I filtered reality through my conviction. I held on and told myself that it will bounce.  It was a glove giant.  But it didn't.  It kept bleeding. I did not just lose money.  I lost clarity.  My belief became a blindfold.  That is the danger of cognitive rigidity : I stop seeing the   hard reality. Top Glove taught me tha

The behavioural trap that ruins my trades is the value trap. Stocks that appear cheap at the moment may be structurally lower due to changes in markets. Particularly commodities during a weak market cycle with a focus on technology stocks particular stocks include $FORTESCUE LTD(FMG.AU)$

misreading information. sell at losses and gain back from other investment

Emotions affect my trades most. Tends to take quick profits and especially eager to trade whenever there are vouchers or funds. Patiently waiting for Patience.

3. That is the biggest problem for me. I bought into Top Glove without keeping close tabs and had to sell at a loss. For the other points, I am not illogical, I accept that I do not know enough and am always willing to read more, or have other perspectives guide my actions. I am happy to give get-rich-quick opportunities like meme stock or risky assets a miss (hearing about individuals who bought trump coins and getting burnt was shocking) Another point I believe in is: do NOT invest in what you cannot afford to lose, especially if you cannot afford to pay attention or read up, if you dump your savings in and lose it all, that would be absolutely fatal.

[Happy][Happy] I often get “Stuck in my Own Head” thinking “good company = good stock”. I also got “tricked by what I see”, buying meme stock like $Palantir Technologies Inc.(PLTR)$. Many times my Feelings control me and I ended up FOMO making impulsive trades. Exchanging information and shaking my feelings with friends on Tiger Traders App helps keep me in check. Thanks @Tiger_comments @TigerStars @Tiger_SG @TigerClub @MillionaireTiger

“Markets can remain irrational longer than you can remain solvent.” — John Maynard Keynes (Pioneer of Modern Economics) Picture this: You're eyeing that hot EV stock, convinced it's the next big thing, but suddenly the market tanks on unexpected tariffs. Do you cut losses or double down? 😩 Behavioral finance reveals how our brains sabotage smart trades, backed by fresh studies showing 85% of retail investors blow accounts due to psychological slips. With AI-driven volatility spiking this year, these traps are more lethal than ever. Dive in to spot—and dodge—them before they drain your gains! 💸 Clinging to Sunk Costs Like a Bad Habit (Loss Aversion Overdrive) Ever poured cash into a flailing crypto like Solana during its 2025 dip, thinking “I’ve already lost so much, might as well ride it

Emotions drive trades. As they say, trading is 50% psychology, 30% trading strategy, and 20% risk management.  If you control your emotions and follow the rules. cut when it's time to cut at stop loss, be patient to take profit. Half the battle will be won. Don't anyhow buy sell based on your feelings. Like now it's a bullish market, don't get too overallocated and leverage just because you feel happy.

Emotion is definitely my biggest trap in investing. When a stock flies, I often get caught up in excitement and refuse to take profit, convinced it’ll go even higher. That greed blinds me to risk — by the time I realize it, the chance to lock in gains is gone. When the stock starts to drop, I tend to hold on, hoping for a rebound. I hate turning a win into a loss, but that hesitation often makes it worse — profits vanish, and I end up in the red. It’s a hard lesson on how emotions quietly override logic, no matter how experienced we think we are. I’ve learned that discipline isn’t about knowledge, it’s about controlling feelings in real time. To manage it, I now set clear take-profit and stop-loss levels and stick to them. Reviewing positions at fixed times instead of watching every move