Investor Behaviour
-
What Is Recency Bias in Investing?
Recency bias in investing occurs when recent information or experiences receive disproportionate weight when expectations and…
-
What Is Overconfidence in Investing?
Overconfidence in investing occurs when confidence in knowledge, judgement or forecasting ability exceeds what the available…
-
Why Investment FOMO Can Affect Decisions
Investment FOMO can develop when rising prices, other people’s apparent gains or a sense of urgency…
-
Why Investors Follow the Crowd
Other investors’ decisions can start to look like useful information, particularly when many people appear to…
-
How Short-Term Market Moves Can Distract From Long-Term Goals
Long-term investments can produce new prices every day, creating a mismatch between goals measured in years…
-
Why Market Falls Feel Worse Than Market Rises Feel Good
Market falls can feel more significant than comparable rises because gains and losses are not necessarily…
-
Why Checking Your Investments Too Often Can Affect Decisions
Checking investments frequently can make short-term gains and losses more prominent and create repeated opportunities to…
-
What Is Performance Chasing?
Performance chasing occurs when recent strong returns become an important reason for choosing an investment. Learn…
-
What Is Loss Aversion in Investing?
Loss aversion describes the tendency for losses to carry greater psychological weight than comparable gains. Learn…
-
Why Investors Buy High and Sell Low
Rising prices can increase confidence and make an investment feel more attractive, while falling prices can…