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Why Investors are Irrational, According to Behavioral Finance

Why Investors Are Irrational, According To Behavioral Finance

Though traditional economic theory posits that individuals are rational, we all know this to be an oversimplification of the truth. The cyclical investment process is rife with psychological pitfalls. Only by becoming aware of and actively avoiding innate Behavioral biases can investors reach impartial decisions. Herein lies the true value of the emerging field of Behavioral Finance, which sheds light on true financial behavior.



This post first appeared on Toptal Engineering, please read the originial post: here

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Why Investors are Irrational, According to Behavioral Finance

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