The stock market is not driven by numbers alone. It is driven by people, and people are emotional. Over time, these emotions repeat in recognizable patterns known as the emotional cycles of the stock market.…
The disposition effect is one of the most studied and costly behavioral biases in investing. It describes a common pattern where investors sell winning investments too early while holding on to losing investments for too…
Behavioral finance is the study of how human psychology influences financial decisions and market outcomes. Traditional finance assumes investors are rational, unemotional, and always act in their best financial interest. Behavioral finance challenges that idea…
Anchoring bias is one of the most common—and most damaging—psychological traps in investing. It happens when investors rely too heavily on the first price or piece of information they see, and then base future decisions…
