Loss aversion is one of the most powerful forces in investing—and it affects almost everyone, from first-time stock buyers to experienced professionals. In simple terms, loss aversion means people feel the pain of losing money…
What Is Panic Selling? How Fear Triggers Market Crashes Financial markets don’t fall only because of bad numbers or weak earnings. Many of the sharpest market declines happen because of panic selling—a powerful emotional reaction…
If you’ve ever felt the urge to invest in a stock simply because everyone else seems to be making money, you’ve experienced FOMO. In investing, FOMO (Fear of Missing Out) is one of the most…
What Is Herd Mentality in the Stock Market? Meaning & Examples Financial markets are often portrayed as rational systems where investors carefully analyze data before making decisions. In reality, emotions and social behavior play a…
