Our Behavioral Biases Play a Major Role in Our Investing Success | Investing Behavior | Scoop.it
The field of behavioral finance has provided us with fascinating insights into how our behaviors as human beings impacts investment results. Using a database of tens of thousands of brokerage records of U.S. individual investors, the authors examined the effect of behavioral biases on the mutual fund choices of a large sample of U.S. discount brokerage investors. Their basic conclusion was that behaviorally biased investors typically make poor decisions about fund style and expenses, trading frequency and timing — resulting in poor performance. The following is a summary of their conclusions:
Via Alessandro De Angelis