Ever wondered why the fear of losing $100 often outweighs the thrill of gaining the same amount? That’s loss aversion in a nutshell, and it’s a powerful force […]
What is behavioral finance?
Behavioral financing is an interesting subfield of economics that mixes mental theories with standard monetary economics to check out why individuals in some cases make unreasonable monetary choices. […]
How Can Overconfidence Bias Impact Investment Decisions?
Overconfidence bias, a mental phenomenon in which a person’s subjective self-confidence in his/her judgments is higher than their unbiased precision, typically plays a subtle yet effective function in […]
How Does Investor Psychology Affect Investment Decisions?
Investor psychology, typically encapsulated in the field of behavioral financing, explores the cognitive procedures that underpin investment choices. Unlike conventional monetary theories, which presume reasonable and utility-maximizing investors, […]
How do market cycles affect investment decisions?
In the vibrant surface of the financial markets, the time duration ‘market cycle’ refers back to the pure ebb and motion of monetary circumstances that activate changes in […]