Concepts

Behavioral Bias

A systematic deviation from rational decision-making caused by cognitive or emotional factors, leading investors to make predictable errors such as overconfidence, anchoring, or loss aversion.

Related Terms

Disposition EffectLoss Aversion

About this term

Behavioral Biases in Quantitative Investing
12 min
The Disposition Effect: Why Investors Sell Winners Too Early
11 min
Overconfidence, Trading Volume, and Returns: Why More Trading Means Lower Performance
5 min
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