When we think of finance, many of us immediately think of complex equations, algorithms or charts. Indeed, numbers do play an important role in the finance industry but an often overlooked, and just as important, aspect is the role of behavioural psychology. In this week’s article the focus will be on the psychological aspect of the financial decision-making process, otherwise known as bias, and how some commonly exhibited biases can affect one’s judgment in making appropriate financial decisions.
Beware of Bias When Making Investment Decisions
