“The investor’s chief problem – and even his worst enemy – is likely to be himself.”
~ Benjamin Graham
Money and emotions are linked together. According to JP Morgan’s report, behaviour is the single most dominant factor in investor returns. Most individual investors — and even professional ones — will eventually underperform the market, due to irrational behavior
People are only human, and so is their financial decision-making.
It would be nice if investors and markets moved solely on the basis of fundamentals: and economic and financial analysis of businesses. But at times, investors appear to lack self-control, act irrational, and make decisions based more on personal biases than facts.
Behavioural Finance is a relatively new area of study looking at the relationship between behavioural psychology and finance, and seeks to understand the driving forces behind irrational financial decisions.
Why behavioral finance matters?
According to traditional finance theories, humans are “rational” and make logical decisions. This implies they analyse every aspect and make informed decisions. Behavioural finance argues that people base their investment decisions on emotions and biases, which goes against traditional finance theory.
.Behavioral finance helps to explain the difference between expectations of efficient, rational investor behavior and actual behavior. So, you see, being aware of behavioral investing, your own and others, can help you(investors) save money and look more carefully before leaping into a move.
Therefore, I am conducting a research to study the impact of behavioural biases on investment decisions for my college project . This study would help investors to understand market sentiments. reflect on their actions and take decisions accordingly. It would be really appreciated if you fill the questionnaire given
~ Benjamin Graham
Money and emotions are linked together. According to JP Morgan’s report, behaviour is the single most dominant factor in investor returns. Most individual investors — and even professional ones — will eventually underperform the market, due to irrational behavior
People are only human, and so is their financial decision-making.
It would be nice if investors and markets moved solely on the basis of fundamentals: and economic and financial analysis of businesses. But at times, investors appear to lack self-control, act irrational, and make decisions based more on personal biases than facts.
Behavioural Finance is a relatively new area of study looking at the relationship between behavioural psychology and finance, and seeks to understand the driving forces behind irrational financial decisions.
Why behavioral finance matters?
According to traditional finance theories, humans are “rational” and make logical decisions. This implies they analyse every aspect and make informed decisions. Behavioural finance argues that people base their investment decisions on emotions and biases, which goes against traditional finance theory.
.Behavioral finance helps to explain the difference between expectations of efficient, rational investor behavior and actual behavior. So, you see, being aware of behavioral investing, your own and others, can help you(investors) save money and look more carefully before leaping into a move.
Therefore, I am conducting a research to study the impact of behavioural biases on investment decisions for my college project . This study would help investors to understand market sentiments. reflect on their actions and take decisions accordingly. It would be really appreciated if you fill the questionnaire given