1. After a stock falls back to its initial price, it becomes a better buying opportunity.
2. It is better to save for a vacation while you still have credit card debt.
3. Investors often seek information that confirms their original investment idea.
4. The Dotcom bubble is an example of herding in the stock market.
5. Overconfidence in investing leads to underestimating risks.
6. The disposition effect refers to the tendency to sell winning stocks too early and hold onto losing stocks too long.
7. After a series of losing slot machine pulls, the chances of winning increase.
8. You should always base your stock decisions on the stock’s highest historical price.
9. People often treat money differently depending on where it came from (e.g., bonus vs. salary).
10. When people have made up their mind about an investment, they tend to ignore contradicting information.
11. Herding happens because investors assume that a large group cannot be wrong.
12. Overconfident investors tend to trade more frequently and incur higher fees.
13. The disposition effect is driven by an emotional attachment to losing stocks.
14. In investing, past performance of a stock is a good indicator of future results.
15. Anchoring occurs when you use irrelevant figures to evaluate a stock's potential.
16. People who receive a tax refund often mentally categorize it differently from their regular income.
17. Confirmation bias occurs when investors actively seek out opposing viewpoints to challenge their ideas.
18. Following the crowd in stock market investing is often driven by fear of missing out (FOMO).
19. Overconfident investors are more likely to take on excessive risk without fully understanding the consequences.
20. The disposition effect can lead to an investor holding onto losing stocks due to emotional attachment.