behavioral finance
Educational articles in this subcategory.
Sunk Cost Fallacy in Stock Ownership
**Intermediate** | Published: 2025-12-28 ## Why It Matters Sunk cost fallacy—the tendency to **continue holding an investment because of previou...
Availability Heuristic in Market Crashes
**Intermediate** | Published: 2025-12-28 ## Why It Matters Availability heuristic—the tendency to **judge probability of events by the ease with...
Overconfidence Bias in Bull Markets
**Intermediate** | Published: 2025-12-28 ## Why It Matters Overconfidence shows up most dangerously after winning streaks: **you attribute skill...
Anchoring on Purchase Price Mistakes
**Intermediate** | Published: 2025-12-28 ## Why It Matters Anchoring on purchase price—the tendency to evaluate stocks relative to what you paid...
Confirmation Bias in Stock Research
**Intermediate** | Published: 2025-12-28 ## Why It Matters Confirmation bias—the tendency to seek, interpret, and remember information that conf...
Herd Behavior During Market Manias
**Intermediate** | Published: 2025-12-28 ## Why It Matters Herd behavior—the tendency to follow the crowd rather than independent analysis—shows...
Loss Aversion and How to Counter It
**Intermediate** | Published: 2025-12-28 ## Why It Matters Loss aversion—the tendency to experience losses more intensely than equally sized gai...
Recency Bias During Sell-Offs
**Intermediate** | Published: 2025-12-28 ## Why It Matters Recency bias—the tendency to overweight recent events when forming expectations—shows...
Disposition Effect and Taxable Accounts
**Intermediate** | Published: 2025-12-28 ## Why It Matters Disposition effect—the tendency to **sell winning stocks too early** (to "lock in" ga...
Mental Accounting in Household Portfolios
**Intermediate** | Published: 2025-12-28 ## Why It Matters Mental accounting—the tendency to **categorize money into separate mental buckets** (...
Accountability Partners and Investment Clubs
**The practical point:** You won't call your accountability partner when you're confident you're right—which is exactly when you need to call them mos...
Planning Responses to Big Market Moves
**The practical point:** Planning your crash response in February (calm) prevents panic paralysis in March (S&P -34%)—you've already decided what to d...
Case Studies of Behavioral Mistakes in US Markets
**Difficulty:** Intermediate **Published:** 2025-12-28 ## Summary This article presents 4 quantified case studies showing measurable behavioral erro...
Mindfulness Techniques for Volatile Markets
**The practical point:** Mindfulness doesn't eliminate fear when your portfolio crashes -28%—it creates a 5-minute gap between feeling fear and sellin...
Habit Tracking for Financial Routines
**The practical point:** You don't need willpower to rebalance if you have a habit—"First Friday of quarter" removes the need to decide "Should I reba...
How Media Consumption Shapes Investor Behavior
**Difficulty:** Intermediate **Published:** 2025-12-28 ## Definition and Key Concepts Media consumption in investment contexts refers to exposure to...
Designing Automation to Remove Bias
**Difficulty:** Advanced **Published:** 2025-12-28 ## Definition and Key Concepts Automation in behavioral finance refers to predetermined rules exe...
Glossary: Behavioral Finance Terms
**Difficulty:** Beginner **Published:** 2025-12-28 ## Introduction This glossary defines 30 behavioral finance terms with one-sentence definitions f...
Status Quo Bias and Portfolio Drift
Status quo bias describes the inertia coefficient—tendency to maintain current holdings despite changing fundamentals or valuations. Behavioral studie...
Checklists to Improve Investment Decisions
Investment checklists reduce decision errors by 20-40% through systematic coverage of critical inputs. Aviation industry reduced fatal errors 60% with...
Fear vs. Greed Indicators Explained
Fear and greed indicators translate crowd sentiment into contrarian positioning signals. Institutional investors use quantified thresholds to identify...
Building Rules-Based Rebalancing to Limit Emotion
Rules-based rebalancing removes emotional override by automating portfolio adjustments. Three primary approaches: threshold-based, calendar-based, and...