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Following the suggestions of an investment advisor may be considered a form of Belief Perseverance Affect heuristic Herding Familiarity The concept of taking more risk with the money in your regular brokerage account than in your Individual Retirement Account is an example of Mental Accounting Overconfidence Loss aversion Herding Trading frequently on the belief that one has information or insight that most others do not is Herding Gambler's fallacy Quasi-magical thinking Overconfidence Andrei Schleifer, author of Inefficient Markets stated that "Investors hardly pursue the passive strategies expected of uninformed market participants by the Efficient Markets Theory". Schleifer then wrote that people deviate from standard decision- making in three ways. These three ways are People do not assess risk in cold, logical fashion; People are not able to properly assess the probabilities of uncertain outcomes; People make choices depending on how information is presented to them People are generally risk averse; People make choices depending on how information is presented to them; People tend to act irrationally when not properly educated on financial matters People are generally risk seekers; People are not able to properly assess the probabilities of uncertain outcomes; People are not generally conscious of why they make most financial decisions. People are not able to properly assess the probabilities of uncertain outcomes: People tend to make most financial decisions from the more emotional and primitive parts of the brain; People tend to invest only in things they are familiar with Our brains can often fool us into making decisions for reasons we are not even aware of. Such instances are called Randomness illusions Cognitive illusions Quasi-magical illusions Optical illusions