Behavioral Finance

[Suba]

Behavioral finance is a study or science that studies the psychological impact of investors on financial markets or investment instruments. So this branch of science focuses on identifying and analyzing inefficiencies and errors in financial markets. In some cases that are often encountered, many investors do not have self-control, are not rational and often decisions are made based on personal bias rather than data and facts in the market.

Many financial experts have applied the concept of behavioral finance to explain to clients about their financial management and also to explain the impact of rational decision making and distinguishing it from decisions that are only based on personal bias.

 

[Springtime]

Before making investment, one must do research and know your risk tolerance level. Don't allow your emotions to affect your investment decisions.