Importance of Behavioral Finance
Blog 3 Shuchi. P. Nahar Need of behavioral finance in today's market scenario.. As discussed in the previous blog , this blog is in continuation and this will help an individual, industry veteran and beginners to understand the roots of finance , depth of instincts and biases. https://myweekendspot.blogspot.com/2019/11/is-long-term-investing-possible-in.html?m=1 Link to previous blog for detail understanding. Behavioral finance came about as a way to explain in a rational way the irrational behavior of markets and investors or, as one acclaimed economist put it, finance from a broader social science perspective including psychology and sociology. Behavioral Finance seeks to account for this behavior, and covers the rationality or otherwise of people making financial investment decisions. Understanding Behavioral Finance helps us to avoid emotion-driven speculation leading to losses, and thus devise an appropriate wealth management strategy . Investo