archiveBehavioral Finance

Understanding the Importance of Behavioral Finance in Decision-Making
Finance

Understanding the Importance of Behavioral Finance in Decision-Making

Behavioral finance is the study of the psychological and emotional factors that influence financial decision-making. Traditional finance theory assumes that people make rational decisions based on complete information and logical analysis. However, behavioral finance recognizes that individuals often make decisions based on emotions, biases, and heuristics that can lead to...
The Psychology Behind Stock Market Bubbles and Crashes
Stocks

The Psychology Behind Stock Market Bubbles and Crashes

Stock market bubbles and crashes are not new phenomena. They have been occurring for centuries. Many investors have lost their fortunes due to these events. The psychology behind these events is fascinating. In this article, we will explore the different psychological factors that contribute to stock market bubbles and crashes....