Investment Risks Rooted In Human Behavior

A statement I have been making to many people for the last 10 years is: "Investment markets cannot be controlled, but how you manage your reaction to them can be". Generally, for most investors the reason that they obtain returns which are on average 6% lower than market returns is because of their behavior. Investors generally make poor investment decisions because of their reactions to events and also to their own life circumstances. This can be because they do not know who they are or how to manage their emotional impulses which are driven from how they are wired to behave. I really want to emphasize that successful investing is about managing your behavior.