Tips by Kurt Box

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Much of financial theory is based upon the idea that individuals act rationally and consider all available information in their decision-making...
Most people tend to underestimate the role of chance in events and thus will erroneously attribute their skill as the defining factor for achieving...
People tend to be much more distressed about a loss than they are happy about the same amount of gain (speaking in terms of dollars). Some researchers...
Tags: emotions, risk, gains
Mental accounting occurs when investors mentally compartmentalize assets such as stocks, bonds, real estate or accounts. This causes investors to lose...
Another term for hindsight biases is "Monday morning quarterbacking." According to Robert Shiller (2000) "The reason for overconfidence may also have...
In making judgments about the level of stock prices, the most likely "anchor" will be the level of recent prices. In other words, the market is...
Overconfidence is often caused by selective memory. We remember our successes but forget our failures. It's one reason why we usually (if we are...
Self control means controlling emotions. There is not much to say in regards to self control, as it is fairly self-explanatory. Not being able to...
What investors should really ask themselves when contemplating selling a stock (or mutual fund) is, "What are the consequences of repeating the same...
People are biased by the knowledge of what has actually happened when evaluating its likelihood. This is also known as the 'I-knew-it-all-along'...
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