Psychology of stock market suckers

Good Slate piece that briefly goes over several aspects of human nature that lead to bad investment decisions, including "Self-attribution Bias," "The Gambler's Fallacy," "Prospect Theory," "Conservatism Bias," "Confirmatory Bias," "Overoptimism," "Outcome Bias," "Buffett's Rearview Mirror," and "Hindsight Bias."

Outcome Bias: We tend to evaluate decisions based on outcomes instead of probabilities. Thus, we congratulate ourselves for stupid choices that happen to turn out well and vow to never again make smart choices that happen to turn out badly. Our errors get reinforced, and our wise decisions rejected.

Link (Via Paul Boutin)