Irrational beliefs or behaviours that can affect our decision-making process are known as “behavioral biases.”
Individuals do not always act logically and evaluate all available information when making decisions, as they are swayed by behavioural biases. These biases can lead to poor judgements. And they can prove to be very costly when it comes to investing in the market.
Behavioral biases are often divided into two types: emotional biases and cognitive biases.
Cognitive biases are a result of simple statistical, information-processing, or memory flaws. They usually stem from poor reasoning.
Emotional biases arise from instinct or intuition and are often the product of feelings influencing judgment.
To ensure that you are not susceptible to these biases, you must identify, accept, and adapt to the biases. Here are a few of them that you should try to minimise or avoid while trading or investing in the market.
Also Read: Here’s How You Can Get a Job in Metaverse and Web3 Industry
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