Investor Psychology
The Effect of Expectations
Value investing seems very simple – you buy a stock when it’s below its intrinsic value and sell it when it exceeds that intrinsic value. But in reality, […]
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Category: Predictably Irrational, The Hidden Forces That Shape Our Decisions by Dan Ariely.
Investor Psychology
Dr. Jekyll vs Mr. Hyde
Many investors believe they are Dr. Jekyll, but research confirms that Mr. Hyde lives within each of them. As researchers say, we humans struggle to assess the “beast” […]
Investor Psychology
The Principle of Price Anchoring
When viewed through the lens of human behavior, even a fundamental economic model like the principle of equilibrium in demand and supply curves comes into question… The issue […]
Investor Psychology
Decoy effect
We make decisions based on the principle of relativity and then consider them “rational.” This also happens when making investment decisions, especially when we use the multiples method […]