BEHAVIORAL FINANCE

SCOPE AND PURPOSE OF THE ARTICLE

The author enumerates 12 human behaviors and identifies how they negatively influence investors decisions. From the abstract, negative reporting and market volatility are identified as an area of concern, both of which lead to emotional reactions by investors. Profit investing is identified as being grounded in rules, disciple and devoid of emotional distraction. The author advocates for the viewing of investments in terms of long-term trend, riskiness and volatility of assets.