Impact on Investing An investor may purchase a stock at $100 per share and refuse to sell the stock even if it decreases to $50 per share; they are anchored...... Read More
Author: fbs10
Anchoring: Relying Too Much on Initial Information Anchoring is when an investor focuses on an initial piece of information, for example, the price at which they bought an investment, and...... Read More
market or select the \"perfect\" stock, leading to poor decision-making and underperformance. It also leads to an avoidance of diversification, assuming that the chosen stocks will always outperform. market or...... Read More
Impact on Investing: Overconfident investors will take too much risk, make excessive trades, or ignore relevant information. An overconfident investor believes in his or her ability to time the Impact...... Read More
Overconfidence Bias: Believing You Know More Than You Do Overestimation of one\'s ability to predict market movements or to pick a winning investment is an example of overconfidence bias. Overconfidence...... Read More