Overview:
Many of us expect to use logic when it comes to how we allocate our investments. The adage of "buy low, sell high" is a saying that makes logical sense. So, why do we always seem to do the opposite? Every day we are faced with decisions, and we are often influenced by two seemingly opposing voices that come from two different parts of our brain. The frontal cortex processes lots of information to help us make logical and informed choices. But there's also a small part of the brain, known as the reflexive brain, that is responsible for emotions and survival instincts. Often, this reflexive brain can have a detrimental effect on the way we handle our investments. This course will discuss some behavioral biases that affect our financial decisions. As humans, we need to be aware of how our reflexive behavior impacts our investment decision-making ability. By uncovering and understanding these biases, we may have a better chance of meeting our long-term financial goals.
Objectives:
- Recognize the behavioral biases that may negatively affect financial decision-making
- Overcome these biases so as to be better able to meet long-term financial goals
Major Topics:
- Availability bias
- Herding
- Loss aversion
- Present bias
- Anchoring
- Home country bias
Major Topics:
- Availability bias
- Herding
- Loss aversion
- Present bias
- Anchoring
- Home country bias
Designed For:
All practitioners and their clients
Prerequisites:
None