![]() Thus, it will force them to make more irrational decisions and ultimately cause them to incur huge losses. If investors purchase a stock and earn a good profit, they are more likely to fall prey to hindsight bias. It is a common occurrence in stock markets Stock Markets Stock Market works on the basic principle of matching supply and demand through an auction process where investors are willing to pay a certain amount for an asset, and they are willing to sell off something they have at a specific price. As a result, they start trusting their instincts more, even if there is no data to support it. Also, it changes the way they see themselves in that world. People begin to perceive uncertain situations as predictable as a result of this.Īccording to research, hindsight bias in psychology changes the way people see the world.
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