Common Behavioral Biases in Stock Investing

You don’t need to eliminate bias. You need friction that catches it.

Frequent offenders

• Confirmation bias — seeking only bullish takes on names you own
• Loss aversion — holding losers too long to avoid “locking in” pain
• Anchoring — fixating on your entry price as “fair value”
• Recency bias — overweighting last week’s narrative

Countermeasures

1. Write the bear case before you buy
2. Pre-define invalidation and size
3. Review decisions on a schedule, not mid-spike
4. Use a consistent memo format so every name gets the same scrutiny

Multi-agent memos force bull/bear/risk into one artifact — useful friction. See Almorex.