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Our financial decisions are heavily influenced by psychology from "summary" of A psicologia financeira by Morgan Housel
It's easy to think of finance as a purely mathematical field. After all, it's all about numbers, right? But the truth is, our financial decisions are heavily influenced by psychology. That's right. The way we think, feel, and behave can have a huge impact on how we manage our money. When it comes to investing, for example, our emotions can often get the best of us. Greed, fear, overconfidence - these are just a few of the psychological factors that can lead us to make irrational decisions. We may hold onto a losing stock because we're too afraid to admit we made a mistake. Or we may jump on the latest investment trend because everyone else is doing it, without fully understanding the risks involved. But it's not just emotions that can trip us up. Our cognitive biases can also play a big role in how we handle money. Confirmation bias, ...
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