What are some of the common behavioural weaknesses investors display in the markets?
Most investors resort to heuristics. It means that investors do not process complete information but take shortcuts, and this leads to behavioural biases. The first type is availability heuristic. It means that people rely on information that is most readily available. Today people are scared about swine flu because the media is talking about it. But more deaths take place in India due to malaria, cholera, and drunken driving. … contd.
