Behavioral Biases in Investing

Cognitive biases deeply influence investor behavior, often amplifying market fluctuations and contributing to the formation of bubbles. Understanding the role

The bias toward short-term gains is a pervasive behavioral tendency influencing investor decisions across markets worldwide. This focus on immediate

Selective memory of investment outcomes is a pervasive cognitive bias that influences investor decision-making and portfolio management. Recognizing how this

Market panic often arises not solely from economic fundamentals but from the emotional reactions of investors. These responses, deeply rooted

The self-serving bias in performance evaluation is a pervasive psychological phenomenon that influences how individuals interpret their successes and failures.

Overestimating personal investment skills is a common behavioral bias that can lead investors astray. Such overconfidence often results in underestimated

Fear and greed are fundamental emotional drivers that significantly influence investor behavior and market dynamics. Understanding how these biases shape

Hindsight bias, often referred to as the “knew-it-all-along” phenomenon, can significantly distort investors’ perceptions of past decisions. This psychological trap

Anchoring to analyst forecasts remains a prevalent cognitive bias in financial decision-making, often shaping investor behaviors and strategic choices. Understanding

Overconfidence in predicting market movements remains a prevalent behavioral bias among investors and financial professionals alike. This psychological tendency can