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investor psychology

3 Surprising Ways Human Behavior Can Make or Break Your Investments

Behavioral Finance vs. Traditional Finance: 3 Surprising Ways Human Behavior Can Make or Break Your Investments

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Behavioral Finance vs. Traditional Finance: 3 Surprising Ways Human Behavior Can Make or Break Your Investments Traditional finance is like that straight-A student who insists that 2+2 always equals 4. Traditionalists believe that investors consistently make decisions based on the expected value of outcomes, with equal weighting of gains and losses. They assume that individuals evaluate choices objectively, irrespective of how they are framed. It’s built on a few key principles: Rationality: Investors are as rational as Spock from Star Trek, always making logical decisions. Market Efficiency: Markets are all-knowing entities, quickly absorbing information and reflecting it in stock prices.… Read More »Behavioral Finance vs. Traditional Finance: 3 Surprising Ways Human Behavior Can Make or Break Your Investments

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Master the Psychology of Market Cycles in 5 Minutes: Uncover Key Insights

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The psychology of market cycles : The psychology of market cycles is a fascinating topic for me  that intersects finance, economics, and human behavior. This article explores the intricate dynamics of market cycles, shedding light on the psychological forces that drive them, accompanied by illustrations that depict various phases and examples as depicted below. Market cycles refer to the long-term pattern of peaks and troughs that any market experiences over a period. These cycles are influenced by a variety of factors, including economic indicators, corporate earnings, geopolitical events, and most notably, human psychology. The Role of Psychology Speaking roughly ,… Read More »Master the Psychology of Market Cycles in 5 Minutes: Uncover Key Insights

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