The investment guru Benjamin Graham is quoted as saying the investor’s main problem, and even his worst enemy, is likely to be himself.
This was before the days of behavioural finance, but rings truer than ever.
As an investor, are you your own worst enemy by making irrational mistakes which you are most likely unaware of?
This question goes to the heart of behavioural finance, which combines the fields of psychology and finance in the decision-making process, says Victor Ricciardi, finance professor at Goucher College in Baltimore in the US and co-editor of the new book Financial Behavior: Players, Services, Products, and Markets.
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