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Topic
Behavioral finance
7 guides in Finabase Learn
- Anchoring and confirmation bias: how investors fool themselves How purchase prices, past highs and targets become anchors, how confirmation bias filters what investors read, the market evidence and ways to counter both.
- Cognitive biases in investing: what the research actually shows A research-based guide to the biases that cost investors money: prospect theory, the disposition effect, overconfidence, herding and anchoring.
- Herd behavior and FOMO in investing: cascades, manias and panics Why investors follow the crowd into manias and out in panics: informational cascades, attention-driven buying, the 2021 GME episode and the cost of missing the best days.
- Limitations of technical analysis: what the research really shows Efficient markets, data snooping and the published evidence on technical trading rules, a 1,000-random-rule experiment on SPY, and where charts genuinely help.
- Loss aversion: why losses hurt twice as much as gains please What loss aversion is, how researchers measure it, how it drives myopic investing and the break-even trap, what the latest evidence says and how investors work around it.
- Overconfidence and overtrading: the research on trading too much How overconfidence shows up in investors, what Barber and Odean and day-trading studies found about frequent trading, and how to measure your turnover.
- Trading psychology: loss aversion, overconfidence and other biases The biases behind costly trading decisions, including loss aversion, overconfidence, the disposition effect and recency bias, and the tools traders use to manage them.
Educational content, not investment advice. Finabase Learn explains how markets and tools work. It does not recommend any security or strategy, and examples are for illustration only. Investing involves risk, including the loss of principal. Rules and figures are for the United States unless stated and can change — check the cited source before you act.