"18 Key Behavioral Finance Biases" - Good document with simple explanations & examples of how these biases impact investors.
cc: @dmuthuk @Gautam__Baid
svwealthadvisors.com/mediahandler/m…
cc: @dmuthuk @Gautam__Baid
svwealthadvisors.com/mediahandler/m…
My cheat sheet from the above article.
Some of my fav ones.
In my experience, for investors in individual stocks, after you get experience in
-Qualitative Analysis of Businesses and Industries
-Financial Statement Analysis & Valuation Analysis
that's when diving into this Behavioral Finance stuff will help you the most.
-Qualitative Analysis of Businesses and Industries
-Financial Statement Analysis & Valuation Analysis
that's when diving into this Behavioral Finance stuff will help you the most.
These biases impact investors at various stages of investing.
-Research (Confirmation bias, Availability bias....)
-Holding (Endowment bias, Overconfidence bias...)
-Selling (Anchoring bias, Loss Aversion bias....)
-General Market (Recency bias, Paradox of choice...)
-Research (Confirmation bias, Availability bias....)
-Holding (Endowment bias, Overconfidence bias...)
-Selling (Anchoring bias, Loss Aversion bias....)
-General Market (Recency bias, Paradox of choice...)
So it helps to know which ones you are constantly being impacted by, which ones the general Market is being impacted by during periods of stress, learn more and come up with strategies that will slowly help you overcome those. 👍
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