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Topic
Prospect theory
2 guides in Finabase Learn
- 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.
- 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.
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.