How Biases Affect Investor Behaviour

Baker, H. Kent; Ricciardi, Victor

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How Biases Affect Investor Behaviour

The European Financial Review, February-March 2014, pp. 7-10

4 Pages Posted: 23 Jun 2014

See all articles by H. Kent Baker

H. Kent Baker

American University - Kogod School of Business

Victor Ricciardi

Ursinus College; Social Science Research Network (SSRN)

Date Written: 2014

Abstract

Investor behaviour often deviates from logic and reason, and investors display many behaviour biases that influence their investment decision-making processes. The authors describe some common behavioural biases and suggest how to mitigate them.

Keywords: Investor psychology, personal finance, financial planning, trading and investing strategies, biases, investment theory, behavioral finance, behavioural finance, behavioral economics

JEL Classification: A12, D81, G00, G30, G10, M00, M10, M41

Suggested Citation: Suggested Citation

Baker, H. Kent and Ricciardi, Victor, How Biases Affect Investor Behaviour (2014). The European Financial Review, February-March 2014, pp. 7-10, Available at SSRN: https://ssrn.com/abstract=2457425