loss aversion
Anchoring bias in the context of investment often happens when investors place too much importance on the initial information they received, creating a psychological benchmark or reference on which all future decisions are made. Anchoring happens to us all the
Hindsight bias makes past events appear more predictable than they were at the time, which can lead investors to believe that the future events are more predictable than they actually are, thereby leading them into the cover-confidence trap. Hindsight is
Investing is a journey, but the course of your journey can be easily derailed if you succumb to your emotional biases. Investing can be an emotional activity, and their influence can lead investors to make irrational and inappropriate investment decisions.
Whether it’s dumping shares, stocking-piling toilet paper or sipping bleach, greed and fear can drive seemingly rational people to make irrational decisions, especially in times of crisis.
