My Finance Blog
Reading Time: 7 minutesINTRODUCTION SELF-ATTRIBUTION BIAS Self-attribution bias is one sort of cognitive error were study participants attribute success to personal ability or effort, but fault failure on environmental conditions.…
Reading Time: 7 minutesWhat is illusion of control bias? The illusion of control bias has been described as a self-deception phenomenon whereby people have a powerful predisposition to overestimate their…
Reading Time: 8 minutesIntroduction to the Story Fallacy Story fallacy refers to how human beings try to rationalize complicated or even arbitrary events into comprehensible stories. The word was coined…
Reading Time: 9 minutesWhat is representative bias? A Conceptual Overview An intuitive introduction to the idea A kind of cognitive shortcut or a mental rule of thumb called more technically…
Reading Time: 8 minutesDefinition Loss aversion in behavioural finance is defined as the state where individuals have a strong desire to avoid losses, even when the same gain in profit…
Reading Time: 8 minutesUNDERSTANDING HINDSIGHT BIAS AND ITS ORIGIN Hindsight bias commonly known as the ‘knew-it-along’ factor entails a situation where people give the impression that events were easier to…
Reading Time: 7 minutesHerd Behavior Sheer movement in the financial market then is the tendency for an individual to follow the rest of a herd unabashedly without bothering to do…
Reading Time: 6 minutesWhat is Dunning-Krugger effect? The Dunning-Kruger effect is a type of illusory superiority where people with low ability or knowledge in a given domain grossly overestimate their…
Reading Time: 8 minutesBEHAVIORAL FINANCE: HINDSIGHT BIAS Hindsight bias commonly known as the ‘knew-it-along’ factor entails a situation where people give the impression that events were easier to predict before…
Reading Time: 7 minutesINTRODUCTION TO HERD BEHAVIOR Sheer movement in the financial market then is the tendency for an individual to follow the rest of a herd unabashedly without bothering…
Reading Time: 9 minutesWhat is Herding Mentality? Herding mentality is a psychological phenomenon where individuals, being part of a group, take collective decisions at times and surrender their judgments to…
Reading Time: 8 minutesFraming Bias Framing bias is one of the most frequent cognitive biases of the discipline of behavioural finance: The framing of the information given affects how it…
Reading Time: 8 minutesWhat is Anchoring Bias? Anchoring bias is the cognitive bias whereby a person places undue emphasis on the first information or cue, which is referred to as…
Reading Time: 9 minutesBehavioural finance is that interesting concept on its own because of the way it deals with the concerns of psychological influence and biases concerning behavior and decision…
Reading Time: 8 minutesDecision-making in finance is very critical. Investors, financial analysts, portfolio managers, and even personal financiers always face the dilemma of making decisions under uncertainty. In the classical…
Reading Time: 6 minutesWHAT IS CONFIRMATION BIAS? AN OVERVIEW Confirmation bias can be defined as a selection and interpretation of information that is consistent with our pre-existing hypothesis within a…
Reading Time: 5 minutesOVERVIEW ON BEHAVIORAL FINANCE Behavioral finance is actually an offshoot of finance that combines aspects of psychology and business to explain why investors make unwise decisions. While…
Reading Time: 4 minutesGiven the general attitude, investment is viewed as a rational activity, in which all considerations took the form of analysis and research and stern thinking before making…
Reading Time: 4 minutes Introduction Behavioral economics is also a significant part of health insurance policy and individual choice. Equipped with these insights about what takes place in the human…
Reading Time: 5 minutesMarket bubbles or financial manias, are part and parcel of history. It’s the state of affairs wherein collectively irrational investment decisions are made through an inflation of…
Reading Time: 3 minutesBehavioral finance is the study of the psychology that influences investment decision making by way of emotions, fear, and greed and through conscious and subconscious bias. This…