Stocks in Translation can be listened to and subscribed to on various platforms such as Apple Podcasts and Spotify. Emotions can often hinder investors from achieving consistent and profitable returns, according to Michaella Gallina, CFO of Wave HQ. She discussed how investor psychology, which includes emotions, biases, and decision-making patterns, significantly impacts an individual's portfolio. Gallina highlighted three biases - loss aversion, recency bias, and confirmation bias - that play crucial roles in investment decisions.

Loss aversion, in particular, stands out as it causes investors to feel losses more intensely than gains. Gallina emphasized the importance of recognizing these cognitive behaviors to avoid making emotional decisions that may be detrimental. She pointed out that loss aversion has a long-lasting negative impact on portfolios, as shown by a JPMorgan survey indicating that many retail investors tend to sell during market lows.

She stressed the significance of staying committed to investments, even during market downturns, as it can lead to more substantial and steady returns. Gallina also mentioned that biases can influence passive strategies, where investors may be swayed by short-term news or stick to prior beliefs. It is crucial to be mindful of these biases and focus on long-term trends rather than short-lived market fluctuations for successful investing.