Psychology of Investing: How Emotions Affect Financial Decisions
Main factors of How Emotion Affects Of Financial Decision. Investing is frequently seen as a logical activity that is supported by facts, analysis, and reasoned judgment. Emotions, however, are very important in financial decision-making and can occasionally take precedence over logical thinking. Making more intelligent and profitable financial decisions requires an understanding of how emotions affect investing. Here are some key considerations about psychological biases that investors need to be aware of and how emotions impact financial decisions.