Behavioral Finance Insights

Understanding how psychology influences your financial decisions.

Common Behavioral Biases

The following biases can significantly impact your financial decision-making:

• Loss Aversion: The tendency to prefer avoiding losses over acquiring equivalent gains
• Overconfidence: Overestimating one’s abilities or knowledge in financial matters
• Recency Bias: Giving more weight to recent events than to historical data
• Anchoring Bias: Relying too heavily on the first piece of information encountered
• Emotional Decision-Making: Letting emotions drive financial choices