Psychological traits impact investment decisions, challenging traditional finance theories.
The article reviews how investors' decisions are influenced by psychology, not just facts. It shows that people don't always make rational choices when investing. This new field, called Behavioural Finance, looks at how our minds affect our money decisions. It tries to bridge the gap between how we actually behave and how we should behave when investing. The review found that there isn't one clear theory yet that explains why people make the financial choices they do.