Why might you remember your investment record as better than it was?
Two different memory errors could make a record look rosier: recalling a return as higher than it was, or leaving an unsuccessful trade out of the story. Research comparing investors’ memories with their records separates these possibilities. A flattering recollection and an accurately measured return are not interchangeable.
Questions you could explore
- How would you distinguish a distorted memory from a forgotten trade?
Start reading
- Proceedings of the National Academy of Sciences / PubMed CentralInvestor memory of past performance is positively biased and predicts overconfidence
Separates remembering a return inaccurately from failing to remember a trade at all, using records as a comparison.
Ready to try your ideas aloud?
Your topic carries over. Record up to 2½ minutes, depending on your plan.