| Behavioral Finance: Anchoring (2008-07-21) |
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marotta
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| Behavioral Finance: Anchoring (2008-07-21) |
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Behavioral Finance: Anchoring (2008-07-21)
by David John Marotta
Our first reaction to a complicated situation, usually instinctive, often does not serve our best interests. One heuristic that the brain uses to solve complex evaluations is to make an initial guess and then adjust from that point. This mental process is called "anchoring."
Read the complete column at http://www.emarotta.com/article.php?ID=293
David John Marotta
Marotta Asset Management, Inc.
Fee-only Financial Planning
http://www.emarotta.com
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Mon Jul 28, 2008 3:19 pm |
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Sanjay
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The investor can then hold the debt and collect the interest or sell the debt on a secondary market. Banks are the main facilitators of funding through the provision of credit, although private equity, mutual funds, hedge funds, and other organizations have become important as they invest in various forms of debt. Financial assets, known as investments, are financially managed with careful attention to financial risk management to control financial risk. Financial instruments allow many forms of securitized assets to be traded on securities exchanges such as stock exchanges, including debt such as bonds as well as equity in publicly traded corporations.
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Mon Nov 22, 2010 4:27 am |
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Crazyfinances
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| Nice Right up |
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I can really use the Anchoring technique as I am an impulsive risk taker when it comes to finances. Even though, I have taken many important and correct financial decisions for my business, I can use your tips to improve.
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Tue Nov 23, 2010 8:23 pm |
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Roksana
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Many investors have bad habits: taking too much or too little risk in their long-term investments; panicking and selling following a large market drop; and chasing returns by buying last year's winners. The study of "Behavioral Finance" provides insight into why investors so often make expensive mistakes... and then make them over and over again. The study of how psychology affects finance lays out some logical explanations for otherwise irrational behavior.
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Wed Dec 01, 2010 3:21 am |
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Moodyxh
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| hi |
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thanks for your information!
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Wed Dec 01, 2010 9:15 am |
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