Mental traps that trip up investorsANCHORS

Fixing on price targets, such as "It's a $200 stock," or Dow 36,000. Filtering out any news that undermines the target.DENIAL

Refusing to sell a losing stock because it means admitting error and giving up hope.HEROICS

Overestimating ability to pick stocks and understand the market. Minimizing failures and remembering successes.HERD MENTALITY

Following the crowd rather than taking a more analytical view of the market or a stock.BLINDERS

Stereotyping stocks and companies as winners or losers, thereby missing reversals in a company's fortune.EXTREMISM

Regarding improbable events as "impossible" and probable events as "certain"--simply misjudging risk.