Saturday, August 24, 2019

Embracing behavioural finance

Here is the article.

I like to read the article and warm up my knowledge about behavioural finance.

recency bias
loss aversion - the pain associated with losses has twice the impact of the pleasure from gains.

confirmation bias (“Have you sought and considered contrary opinions?”); 
recency bias (“How important is recent price performance to your decision?”); 
availability bias (“Is recent news swaying your decision?”); 
and anchoring (“Do you have a previous high or an initial purchase price as an anchor?”), among other questions.

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