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9 psychological biases that hurt investors

U.S. News & World Report - Money Logo By Christine Giordano of U.S. News & World Report - Money | Slide 1 of 10: We all are led by primal instincts sometimes. And those instincts can help us make decisions on whether to wait for a good opportunity or cut our losses and leave when situations are bad for us. But those same primal instincts can work against us when it comes to <a href="http://www.usnews.com/topics/subjects/investing">investing</a>, and create psychological biases that have us avoiding things we're unsure of, or divesting when prices drop instead of reinvesting. Without risk, there is no innovation, after all. Here are some known pitfalls when it comes to investing psychology.

Know the pitfalls of investing psychology

We all are led by primal instincts sometimes. And those instincts can help us make decisions on whether to wait for a good opportunity or cut our losses and leave when situations are bad for us. But those same primal instincts can work against us when it comes to investing, and create psychological biases that have us avoiding things we're unsure of, or divesting when prices drop instead of reinvesting. Without risk, there is no innovation, after all.

Click ahead for some known pitfalls when it comes to investing psychology.

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