MARKETS
Primer | How to avoid gambler’s fallacy while investing
It is not uncommon to see people holding on to losing positions, because they believe that since it has fallen enough already, it should rise soon enough.
MARKETS
Primer | How framing effect works against logical investment behaviour
Investors must avoid the swathes of false positivity offered by sell-side analysts.
BUSINESS
Primer | How to avoid the endowment effect, or falling in love with your investments
How to deal with the endowment effect in investment
BUSINESS
Primer | When investors become sheep
Don’t be in a hurry to climb aboard a bandwagon
BUSINESS
Primer | Burying your head in the sand, are you?
An ostrich is no role model for investors.
MARKETS
Primer | How to avoid outcome bias while investing
Do not judge your decisions by the outcome alone
BUSINESS
Primer | Don’t ‘shoot the message’ while investing
The perils of reactive devaluation
INDIA
Primer | Familiarity bias: Why you shouldn’t trust a known devil
Staying within our zone of familiarity is particularly detrimental in investing
MARKETS
Primer | Regret aversion: How far would you go to avoid being wrong
The psychological effect of losses is twice as powerful as that of gains
MARKETS
Primer | How to avoid anchoring bias in your investments
Even professional money managers are susceptible to anchoring bias. This begs the question that if professional money management is not the solution, then what is?
MARKETS
Primer | How not to be swayed by greed and fear while investing in stock markets
The solution is investing through quantitative portfolio managers (not to be confused with portfolio managers who use technical analysis). Quantitative investing is based on numbers and numbers alone.
