Emotions can cloud financial judgment from "summary" of Advances in Behavioral Finance by Richard H. Thaler
When it comes to making financial decisions, emotions can often get in the way of sound judgment. People tend to let their feelings dictate their choices, rather than relying on rational analysis. This can lead to poor decision-making, as emotions are not always the best guide when it comes to financial matters. For example, individuals may let fear or anxiety drive their investment decisions, causing them to sell off assets at the wrong time or make impulsive trades. Similarly, feelings of greed or overconfidence can lead people to take on excessive risks, putting their financial well-being in jeopardy. Emotions can a...Similar Posts
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