Why Your Investment Success Hinges On Right Decisions

In the world of investing, a realm often dominated by numbers, graphs, and forward projections, there rests a pivotal yet underemphasised cornerstone: Behaviour. The significance of behaviour in financial decision-making cannot be overstated, as it often steers the ship in turbulent waters of market volatility. “Psychological research had a great impact on shaping the theories of behavioural finance. One such remarkable series of experiments was the Asch Conformity Experiments conducted in the 1950s by Solomon Asch.” These experiments highlighted the tendency among individuals to conform to a group’s incorrect consensus, illustrating the perilous ‘herd behaviour’. This form of cognitive bias, among others, plays a crucial role when individuals engage with financial markets. Investor behaviour, according to multiple studies, is a linchpin to long-term...