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The relationship between psychology and stock investing

Our psychological biases come to bear on our investing habits, leading to outcomes we'd rather avoid

The relationship between psychology and stock investing

If you thought that investing in the stock market is all about crunching numbers, you will be surprised to learn that your own psychology is as much, if not more important when it comes to making critical decisions. The study of the mind and behavior as it relates to how we invest is a subject that is not only extremely interesting, but also greatly useful to investors. Since market moves tend to be erratic and often irrational, self-awareness can help us recognise when our instincts are not grounded in clear thinking. Nothing is more unfortunate than losing money despite having the right research at one's fingertips, simply because of the very human tendency to act and think in certain ways. One important

This article was originally published on September 28, 2020.


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