The prestige bias is a cognitive automatism that leads humans to appreciate and imitate those individuals who arouse admiration and consideration within a community. Beauty Flow" Kevin MacLeod (incompetech.com) Licensed under Creative Commons: By Attribution 4.0 License http://creativecommons.org/licenses/by/4.0/
21.11.2024 | 100 | 0
Behavioural finance
There is a saying that it is the first impression that counts: this adage is partly taken up by behavioural finance studies, which speak of a phenomenon called 'anchoring', a cognitive bias that can prove insidious and a source of errors for investors. Beauty Flow" Kevin MacLeod (incompetech.com) Licensed under Creative Commons: By Attribution 4.0 License http://creativecommons.org/licenses/by/4.0/
09.08.2024 | 109 | 0
Behavioural finance
Making your choices based on what the majority of investors do can lead to unpleasant consequences: this effect, known as the ‘herd effect’, is well known and studied by behavioural finance. Beauty Flow" Kevin MacLeod (incompetech.com) Licensed under Creative Commons: By Attribution 4.0 License http://creativecommons.org/licenses/by/4.0/
02.08.2024 | 114 | 0
Behavioural finance
Ignorance of one's own limits can lead to overestimating one's own abilities and to making mistakes even in the area of investments. This bias is also known by scholars as the ‘Dunning-Kruger effect’. Beauty Flow" Kevin MacLeod (incompetech.com) Licensed under Creative Commons: By Attribution 4.0 License http://creativecommons.org/licenses/by/4.0/
26.07.2024 | 115 | 0
Behavioural finance
"Wishful thinking" means thinking that something is possible or will happen on the basis of a hope, disregarding a rational examination of the situation based on reality. It is a cognitive bias that also has repercussions in the financial sphere. Beauty Flow" Kevin MacLeod (incompetech.com) Licensed under Creative Commons: By Attribution 4.0 License http://creativecommons.org/licenses/by/4.0/
10.07.2024 | 160 | 0
Behavioural finance
Emotions play an important role in investing. On the one hand, it can motivate and drive investment decisions. On the other hand, it can have a negative impact and jeopardise the success of a financial strategy. Beauty Flow" Kevin MacLeod (incompetech.com) Licensed under Creative Commons: By Attribution 4.0 License http://creativecommons.org/licenses/by/4.0/
11.04.2024 | 114 | 0
Behavioural finance
The tendency to believe that a certain random sequence of events will influence future events is a phenomenon known in behavioural psychology as the 'gambler's fallacy', and it is also a risk in the area of investing. Beauty Flow" Kevin MacLeod (incompetech.com) Licensed under Creative Commons: By Attribution 4.0 License http://creativecommons.org/licenses/by/4.0/
11.01.2024 | 132 | 0
Behavioural finance
In finance, the "survivorship bias" tends to accompany cases of great success of certain investments, whose hype overshadows cases where the same type of investment led to failure: this leads to a systematic distortion in the assessment of the real risks, which are therefore significantly underestimated. Beauty Flow" Kevin MacLeod (incompetech.com) Licensed under Creative Commons: By Attribution 4.0 License http://creativecommons.org/licenses/by/4.0/
11.12.2023 | 144 | 0
Behavioural finance
Attribution bias is the systematic tendency to apply different criteria when attributing causes to a phenomenon; in finance, for example, it leads to overestimating one's own abilities and underestimating the role of chance when it comes to one's own investments, while doing the opposite when it comes to the investments of others. Beauty Flow" Kevin MacLeod (incompetech.com) Licensed under Creative Commons: By Attribution 4.0 License http://creativecommons.org/licenses/by/4.0/
01.12.2023 | 155 | 0
Behavioural finance
