Now that you’re fully informed, check out this essential video on Behavioural Finance: How psychology can affect investors – MoneyWeek Videos.
With over 23334 views, this video is a must-watch for anyone interested in Finance.
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Thanks for the video.
I am conducting my thesis on this subject. The only issue I am finding is how to quantify these biases and how to determine whether stock prices have been affected by such biases.
Any help? Thanks!
Investors with good control of emotions normally make profits. That is my painful experience. Those with good technical skills but weak psychology always buy and sell easily and are unable to stay with the winning stocks but with the losing stocks. Those who are not suitable to be engaged in day trading or short-term trading usually do not have strong psychology and control of emotions. They should revert back to becoming longer term investors. Long term investment can help us avoid the short term fluctuations and focus on the intrinsic value of the stocks. However, I am always affected by emotions so I need to control them, but this would take many many years.
Nice
What do you think of investing in Alibaba
So true…
The example you gave: story of my life
Fantastic topic!
would be interesting about psychology of masses. How crowd acts.