Why Behavioral Finance?

Behavioral finance will help you discover, observe, understand and correct some of the irrational processes you engage yourself and your money in. For example, you will learn that pain of losing is felt twice as strong as a pleasure of gaining, even when the value of both are the same. This is a concept called Loss Aversion – one of the cognitive biases most of the people experience. Isn’t it irrational to perceive two events of the same magnitude so differently?

personal finance

This and many more other concepts and tips related to the psychology in finance you will find in lessons tagged as Behavioural Finance. Interested yet?

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