Making predictions and forecasting the future are integral parts of everyday life, yet it’s unlikely individuals realize the amount of predictions one makes in a day. The use of heuristics or “rules of thumb” are ingrained in human psychology and help people quickly determine courses of action with limited information at their disposal. Deciding what…
Tag: Behavioural Finance
Should It Be Called “Behavioural” Finance?
Despite all the resources that have gone into studying the field of finance, there is still not one concise theory that can fully explain price action in financial markets. The lack of data and presence of behavioural factors make the “laboratory” a challenging environment to control for specific variables; thus, the field of finance is…