Behavioural Finance and Psychology
of Investing
Seeing
is not believing. It's only seeing.
Introduction
– Behavioural Finance
q Sooner or
later, you are going to make an investment decision that ends up costing you a
lot of money.
q You think you made a sound decision, but now you are facing a loss…
does this mean you are “unlucky.”?
q You made a bad decision—one that could have been
avoided.
q The beginning of investment wisdom: (exam studies)
q Learn to recognize circumstances leading to poor
decisions.
q Then, you will reduce the damage from investment
blunders.
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