We have heard many times about the investing aka behavioural biases. Say Loss aversion / herd mentality / anchoring biases etc etc. We roughly know their meanings and understand many of them. But it's not easy to AVOID them in our investing journey.
Like there are laws in Physics, there are soft-laws in markets too. These are the basic tendencies of the market. An understanding of these is more important than psychology.
Good one Vikas.
I personally feel psychology in markets is over-rated. The bigger mistakes happen from structural misunderstanding of how markets work.
Thanks a lot Prabhakar sir. Can you please elaborate on - structural misunderstanding ? Frankly I didn't get it. Thanks in advance.
Like there are laws in Physics, there are soft-laws in markets too. These are the basic tendencies of the market. An understanding of these is more important than psychology.
Will try to cover them sometime.
Ok sir. Looking forward to your post on the same. Please do cover it. Thanks
Few remedies to this:
1. Avoid stocks that are popular on social media and stocks discussed by similar famous persons on social media.
2. Use technical analysis to exit.
Thanks a lot for your inputs.
Great ..
Thanks for sharing the Experience
It will helpful to new people like me to invest in market .
Thanks a lot for your kind words.