Article series Delving into the Psychology behind Financial Decision Making
Behavioral Finance Series Part I
This week’s post is going to explore a topic I’ve perpetually been fascinated about – “Behavioural Finance”, specifically the various biases we might fall victim to! INTRODUCTION To provide you some context, Traditional Finance [TF] assumes that investors are “rational” decision makers and have access to perfect information equally. It characterises investors as risk averse…
Behavioral Finance Series Part II
Part I gave a good introduction to what Behavioural Finance actually is. As a recap, Behavioural Biases can be divided into two categories namely, (I) Cognitive Errors and (II) Emotional Biases. In this post, let’s delve deeper and understand what our “Emotional Biases” are shall we? EMOTIONAL BIASES Emotional Biases are the types of behavioural…
Behavioral Finance Series Part III
SETTING THE CONTEXT So, in the previous two posts in the “Behavioural Finance Series” I had provided a brief introduction on the topic of Behavioural Finance, its distinction from the Traditional Finance Perspective and covered an overview of different types of Emotional Biases. If you’ve not already gone over those articles here’s the link, Part…
Behavioural Models
Setting the Context: In a previous post, I had gone over the basics of different types of theories underlying Portfolio Management. Now, since these theories stem from the Traditional Finance perspective, I felt it was apropos to introduce a couple of theories which come under the realm of Behavioural Finance. Right, so let’s jump into…
Wait, if we’re not in control of our decisions, then who controls them?
Behavioural Economist and Author of “Predictably Irrational” – Dan Ariely, gives an engaging TED talk about decision-making.
The Importance of a Personal Narrative
All of us are merely walking narratives, we’re cumulations of our experiences, reactions and perceptions to those experiences. Lori Gottlieb, a renowned Psychologist goes over the importance of how changing our personal narrative, can change our life. It’s an awesome watch!