Behavioral Biases in Investing

Status quo bias significantly influences investor behavior, often leading to resistance against portfolio changes despite evolving market conditions. Recognizing this

Optimism bias, a well-documented behavioral bias, influences how investors perceive risks and opportunities, often leading to overly confident decision-making. Recognizing

The fear of missing out (FOMO) has become a pervasive psychological phenomenon influencing investor behavior worldwide. As social media platforms

Emotions play a crucial yet often overlooked role in shaping investment decisions. How do feelings like fear and greed influence

Behavioral biases significantly influence investment decisions, often leading to suboptimal outcomes. Among these biases, mental accounting and portfolio segmentation play

Market news often triggers swift emotional reactions among investors, sometimes leading to exaggerated market movements. Understanding overreaction to market news

Availability bias significantly influences investment analysis by causing investors to overemphasize recent or memorable information when making decisions. Understanding how

The disposition effect remains a well-documented behavioral bias influencing investor decision-making, often leading to suboptimal profit management. Recognizing how emotions

Recency bias significantly influences market perception, often leading investors to overweight recent events while undervaluing long-term trends. This behavioral bias

The anchoring effect significantly influences investment decisions by shaping individuals’ price expectations based on initial reference points. Understanding its role