COMMON MISTAKES OF INVESTORS

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Wai Pong Raymond Yuen

https://doi.org/10.22495/rgcv2i3art2

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