<description>&lt;p class="text-node"&gt;This episode was originally part of the Market Memo newsletter, where you learn about sharemarket investing every week. You can subscribe to that, here &lt;a class="link" href="https://marketmemoweekly.substack.com/" target="_blank" rel="noopener noreferrer"&gt;https://marketmemoweekly.substack.com/&lt;/a&gt;&lt;/p&gt;&lt;p class="text-node"&gt;&lt;/p&gt;&lt;p class="text-node"&gt;It’s never been easier to start investing. And that’s both brilliant, and part of the problem.&lt;/p&gt;&lt;p class="text-node"&gt;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.&lt;/p&gt;&lt;p class="text-node"&gt;Now, for most people, the biggest risk to their money isn’t the market. It’s their own brain.&lt;/p&gt;&lt;p class="text-node"&gt;&lt;/p&gt;&lt;p class="text-node"&gt;In this episode of &lt;em&gt;Making Cents&lt;/em&gt;, it’s the seven common mental traps that trip investors up.&lt;/p&gt;&lt;p class="text-node"&gt;We’ll cover:&lt;/p&gt;&lt;ul class="list-node"&gt;&lt;li class="list-item-node"&gt;&lt;p class="text-node"&gt;Why losses hurt so much more than gains (and what that makes people do)&lt;/p&gt;&lt;/li&gt;&lt;li class="list-item-node"&gt;&lt;p class="text-node"&gt;How herd behaviour and FOMO sneak into otherwise sensible decisions&lt;/p&gt;&lt;/li&gt;&lt;li class="list-item-node"&gt;&lt;p class="text-node"&gt;Why sticking to what feels familiar can cost you real growth&lt;/p&gt;&lt;/li&gt;&lt;li class="list-item-node"&gt;&lt;p class="text-node"&gt;The mental shortcuts that make short-term noise feel more important than long-term plans&lt;/p&gt;&lt;/li&gt;&lt;li class="list-item-node"&gt;&lt;p class="text-node"&gt;And the simple systems that help emotions stop driving the car&lt;/p&gt;&lt;/li&gt;&lt;/ul&gt;&lt;br/&gt;&lt;p class="text-node"&gt;&lt;/p&gt;&lt;p class="text-node"&gt;This episode isn’t about suppressing your feelings or becoming some emotionless investing robot.&lt;/p&gt;&lt;p class="text-node"&gt;It’s about understanding how your brain works, and putting smart guardrails in place so it doesn’t sabotage your future.&lt;/p&gt;&lt;p class="text-node"&gt;&lt;/p&gt;&lt;p class="text-node"&gt;Follow me everywhere!&lt;/p&gt;&lt;p class="text-node"&gt;Facebook / &lt;a class="link" href="https://www.facebook.com/FrancesCookNZ" target="_blank" rel="noopener noreferrer"&gt;https://www.facebook.com/FrancesCookNZ&lt;/a&gt;&lt;/p&gt;&lt;p class="text-node"&gt;Instagram / &lt;a class="link" href="https://www.instagram.com/francescooknz" target="_blank" rel="noopener noreferrer"&gt;https://www.instagram.com/francescooknz&lt;/a&gt;&lt;/p&gt;&lt;p class="text-node"&gt;TikTok / &lt;a class="link" href="https://www.tiktok.com/@francescooknz" target="_blank" rel="noopener noreferrer"&gt;https://www.tiktok.com/@francescooknz&lt;/a&gt;&lt;/p&gt;&lt;p class="text-node"&gt;&lt;/p&gt;&lt;p class="text-node"&gt;Join the Money Memo newsletter for a free weekly money tip in your inbox each week &lt;a class="link" href="https://www.francescook.co.nz/subscribe" target="_blank" rel="noopener noreferrer"&gt;https://www.francescook.co.nz/subscribe&lt;/a&gt;&lt;/p&gt;&lt;p class="text-node"&gt;&lt;/p&gt;&lt;p class="text-node"&gt;This podcast was filmed &amp;amp; produced by Fanaticals&lt;/p&gt;&lt;p class="text-node"&gt;Video editing &amp;amp; content production by Lana Byrne&lt;/p&gt;&lt;p class="text-node"&gt;Audio engineering by Tash Chittock&lt;/p&gt;&lt;p class="text-node"&gt;&lt;/p&gt;&lt;p class="text-node"&gt;#MakingCents #FrancesCook #InvestingPsychology #BehaviouralFinance #MoneyPsychology #InvestorMindset #MentalTraps #Investing&lt;/p&gt;&lt;p class="text-node"&gt;&lt;/p&gt;&lt;p class="text-node"&gt;&lt;h3&gt;Chapters&lt;/h3&gt;&lt;ul&gt;&lt;li&gt;&lt;strong&gt;00:00:00&lt;/strong&gt; Introduction&lt;/li&gt;&lt;li&gt;&lt;strong&gt;00:02:18&lt;/strong&gt; Loss aversion: the pain hits harder than the pleasure&lt;/li&gt;&lt;li&gt;&lt;strong&gt;00:03:31&lt;/strong&gt; Overconfidence bias: the 'I can time the market' illusion&lt;/li&gt;&lt;li&gt;&lt;strong&gt;00:05:21&lt;/strong&gt; Herd behavior and FOMO: when everyone's buying, beware&lt;/li&gt;&lt;li&gt;&lt;strong&gt;00:07:13&lt;/strong&gt; Home bias: comfort can cost you&lt;/li&gt;&lt;li&gt;&lt;strong&gt;00:08:31&lt;/strong&gt; Confirmation bias: the echo chamber effect&lt;/li&gt;&lt;li&gt;&lt;strong&gt;00:09:39&lt;/strong&gt; Recency bias: thinking yesterday predicts tomorrow&lt;/li&gt;&lt;li&gt;&lt;strong&gt;00:10:48&lt;/strong&gt; Present bias: the 'now' trap&lt;/li&gt;&lt;li&gt;&lt;strong&gt;00:12:19&lt;/strong&gt; Wrapping up: stop emotions from driving the car&lt;/li&gt;&lt;li&gt;&lt;strong&gt;00:13:00&lt;/strong&gt; Outro&lt;/li&gt;&lt;/ul&gt;&lt;br/&gt;&lt;/p&gt;</description>

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