This episode was originally part of the Market Memo newsletter, where you learn about sharemarket investing every week. You can subscribe to that, here https://marketmemoweekly.substack.com/



It’s never been easier to start investing. And that’s both brilliant, and part of the problem.

Between constant headlines, market swings, hot takes on social media, and apps that let you trade with a swipe, investing has turned into a psychological minefield.

Now, for most people, the biggest risk to their money isn’t the market. It’s their own brain.



In this episode of Making Cents, it’s the seven common mental traps that trip investors up.

We’ll cover:





Why losses hurt so much more than gains (and what that makes people do)



How herd behaviour and FOMO sneak into otherwise sensible decisions



Why sticking to what feels familiar can cost you real growth



The mental shortcuts that make short-term noise feel more important than long-term plans



And the simple systems that help emotions stop driving the car



This episode isn’t about suppressing your feelings or becoming some emotionless investing robot.

It’s about understanding how your brain works, and putting smart guardrails in place so it doesn’t sabotage your future.



Follow me everywhere!

Facebook / https://www.facebook.com/FrancesCookNZ

Instagram / https://www.instagram.com/francescooknz

TikTok / https://www.tiktok.com/@francescooknz



Join the Money Memo newsletter for a free weekly money tip in your inbox each week https://www.francescook.co.nz/subscribe



This podcast was filmed & produced by Fanaticals

Video editing & content production by Lana Byrne

Audio engineering by Tash Chittock



#MakingCents #FrancesCook #InvestingPsychology #BehaviouralFinance #MoneyPsychology #InvestorMindset #MentalTraps #Investing



Chapters

00:00:00 Introduction
00:02:18 Loss aversion: the pain hits harder than the pleasure
00:03:31 Overconfidence bias: the 'I can time the market' illusion
00:05:21 Herd behavior and FOMO: when everyone's buying, beware
00:07:13 Home bias: comfort can cost you
00:08:31 Confirmation bias: the echo chamber effect
00:09:39 Recency bias: thinking yesterday predicts tomorrow
00:10:48 Present bias: the 'now' trap
00:12:19 Wrapping up: stop emotions from driving the car
00:13:00 Outro

Making Cents

Frances Cook

7 mental traps to avoid when you’re investing

FEB 4, 202613 MIN
Making Cents

7 mental traps to avoid when you’re investing

FEB 4, 202613 MIN

Description

This episode was originally part of the Market Memo newsletter, where you learn about sharemarket investing every week. You can subscribe to that, here https://marketmemoweekly.substack.com/It’s never been easier to start investing. And that’s both brilliant, and part of the problem.Between constant headlines, market swings, hot takes on social media, and apps that let you trade with a swipe, investing has turned into a psychological minefield.Now, for most people, the biggest risk to their money isn’t the market. It’s their own brain.In this episode of Making Cents, it’s the seven common mental traps that trip investors up.We’ll cover:Why losses hurt so much more than gains (and what that makes people do)How herd behaviour and FOMO sneak into otherwise sensible decisionsWhy sticking to what feels familiar can cost you real growthThe mental shortcuts that make short-term noise feel more important than long-term plansAnd the simple systems that help emotions stop driving the carThis episode isn’t about suppressing your feelings or becoming some emotionless investing robot.It’s about understanding how your brain works, and putting smart guardrails in place so it doesn’t sabotage your future.Follow me everywhere!Facebook / https://www.facebook.com/FrancesCookNZInstagram / https://www.instagram.com/francescooknzTikTok / https://www.tiktok.com/@francescooknzJoin the Money Memo newsletter for a free weekly money tip in your inbox each week https://www.francescook.co.nz/subscribeThis podcast was filmed & produced by FanaticalsVideo editing & content production by Lana ByrneAudio engineering by Tash Chittock#MakingCents #FrancesCook #InvestingPsychology #BehaviouralFinance #MoneyPsychology #InvestorMindset #MentalTraps #InvestingChapters00:00:00 Introduction00:02:18 Loss aversion: the pain hits harder than the pleasure00:03:31 Overconfidence bias: the 'I can time the market' illusion00:05:21 Herd behavior and FOMO: when everyone's buying, beware00:07:13 Home bias: comfort can cost you00:08:31 Confirmation bias: the echo chamber effect00:09:39 Recency bias: thinking yesterday predicts tomorrow00:10:48 Present bias: the 'now' trap00:12:19 Wrapping up: stop emotions from driving the car00:13:00 Outro