Investing in the stock market is not just a game of numbers and strategies; it also encompasses the subtle and complex realm of human psychology. Understanding the psychological factors that influence investor behavior can significantly improve decision-making and enhance the potential for successful investment outcomes. In this exploration of the psychology of investing, we unravel key cognitive biases and emotional responses that investors must navigate to make rational investment decisions.
Behavioral Finance: Why Psychology Matters in Investing
Behavioral finance, a sub-field of behavioral economics, merges psychology with economics to explain why...