Many of us are likely to encounter challenges to successful investing. And although individuals respond differently, behavioral economists have identified some common predispositions, ranging from loss aversion to overconfidence, that may influence investors’ financial decisions. Gaining a better understanding of these tendencies can enable investors to base their choices on logic rather than emotion. With that in mind, I’ll highlight four investing challenges over the next four days and explain why they might affect you and provide suggestions on how to address them.

A sound investment plan and a rational approach can help people become more self assured when managing their portfolios. Your emotions may still be an influence, but you will be able to make more appropriate decisions about when to take action and you may be far more likely to behave in a manner that increases your chances of reaching important financial goals.