In this article, we will explore the intricacies of financial decision-making and how to protect your investments in the stock market. We’ll delve into various heuristics and cognitive biases that...
Read MoreBehavioral Finance and Trading
How behavioral finance can help you to trade and invest better. The financial market is a place full of emotions and irrationality. It’s easy to fall into its numerous traps and lose money. The behavioral finance can help you to avoid these traps, especially those set by yourself – it’s unbelievable, but you are the worst enemy you’ll find over here. The behavioral finance is a relatively new field on science, but it already had such a huge impact on our society. Although Adam Smith theorized a lot of things almost 300 years ago in his book “The Theory of Moral Sentiments”, just recently we were able to do a scientific approach to our behaviors and emotions and figure out exactly how they influence our lives. Just as I said in this post, technical analysis is a good tool to understand the market. The candlesticks and the Dow Theory were