Emotional Bias & Overconfidence Lead to Poor Investment Decisions, Study Finds
Investors often make irrational decisions due to overconfidence and emotional biases, which can lead to poor investment performance. Behavioral finance studies these irrational behaviors by combining psychology with finance. In today's world, investors have access to a lot of information, making decision-making even more challenging. Overconfidence and emotional biases play a significant role in investment decision-making, causing people to deviate from rational economic behavior. This study focuses on how overconfidence and emotions impact investment performance.