
Summary of Psychology and Investing
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Summary of Psychology and Investing
In this brief overview of behavioral finance, we’ve touched on the major tendencies that influence everyday investors. Being aware of these influences can make it less likely that you will succumb to them.
What you have learned
- Overconfidence
- Selective Memory
- Self-Handicapping
- Loss Aversion
- Sunk Costs
- Anchoring
- Confirmation Bias
- Mental Accounting
- Framing Effect
- Herding