COMMON MISTAKES OF INVESTORS

Download This Article

Abstract

Behavioral finance is an actively discussed topic in the academic and investment circle. The main reason is because behavioral finance challenges the validity of a cornerstone of the modern financial theory: rationality of investors. In this paper, the common irrational behaviors of investors are discussed.

Keywords: Investors, Anchoring, Overconfidence, Information Overflow, Herd Instinct, Expert Reference

How to cite this paper: Yuen, W. P. R. (2012). Common mistakes of investors. Risk Governance and Control: Financial Markets & Institutions, 2(3), 23-25. https://doi.org/10.22495/rgcv2i3art2