Overconfidence and Herding Influence Investment Decisions in Nepalese Stock Market.
Individual investors in the Nepalese stock market were studied to see how their psychology affects their investment decisions. Factors like overconfidence, herding, and loss aversion were found to influence their decisions, while anchoring, mental accounting, and regret aversion did not. Both cognitive biases (like anchoring and herding) and emotional biases (like overconfidence and loss aversion) play a significant role in how individual investors make decisions in the Nepalese stock exchange.