If I ask you to recall name of 10 people you met this month, whom do you recall? Just observe, mostly you will recall name of 10 people whom you mate recently. This is recency effect. Similarly, if I ask you for opinion on behaviour or performance of any of your colleagues or employees kindly …
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Recently me & my wife were sitting idle at home so we planned to watch a movie. Bought the tickets online and went to watch the movie. In first 20 minutes we realized that the movie was boring and it was waste of time. I told my wife, let us move out and go for …
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In my last article I wrote about what is Anchoring Bias and we also saw few examples of anchoring Bias. Now this month I would like to throw some light on how it affects our investment decisions and How to get out of Anchoring Bias? How Anchoring Bias affects our investment decisions? Anchoring is basically …
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Anchoring Bias in Decision Making: In my last article we saw that while taking our financial decisions mostly we react emotionally. We also discussed left brain: right brain theory as well as System 1 and system 2 theory given by Danial Kahneman. In this article I want to discuss Anchoring Bias which affects our decision …
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Till now I have written many articles on different topics of personal finance but this is my first article on “How Psychology plays an important role in your financial decisions?” When I say Psychology plays important role in your financial decisions, it looks very odd at first instance. Apparently it looks that finance has nothing …
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