Summary
Studies show that 15 percent of the time, when we feel that we are absolutely, positively right about something, we're actually wrong. That's overconfidence, one of many behavioral flaws that can be financially dangerous for investors.
The emerging field of behavioral finance studies our irrational investment decisions. Ultimately, it may give us insight into "irrational" market swings.See the full content of this document
Extract
New Field of Finance Studies Investor Errors
One example of financial decision-making swayed by emotion is the "disposition effect": When investors sell stocks from their portfolio, they tend to sell winners and hang on to losers.
"It's very natur...See the full content of this document
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