What is Confirmation Bias: “People only listen what they like to listen” is a generic statement that has deep-rooted psychological meanings. If you consider psychology and investment, both go hand in hand. Since the two are closely related, you would know that one changes (or alters) the effects of the other. One such psychological phenomenon […]

What is Loss Aversion: If we ask you to play a coin toss game with us where you’ll get Rs 1,000 if you win, however, you’ll have to give us Rs 1,000 if you lose, will you play the game? It’s a fair game. Right? You have an equal chance to win Rs 1,000. However, […]

We frequently hear various news of Morgan Stanley or Goldman Sachs selling shares in some companies or the names of Indian companies like Motilal Oswal coming up in the bulk purchase data for some stocks. Usually whenever there is any selling by these funds & companies the stock price drops sharply and vice versa. Such examples […]

Herd mentality is a very common investing psychology seen in most investments done by the people. Here, a majority of past investment done by the mass constitutes refined data to show inferences. An investor’s natural instinct goes with the ones of masses, which means that he/she doesn’t seem to have a rational view on a […]

What is Gambler’s Fallacy: Statistics are always surrounded by two kinds of events – dependent and independent events. While the dependent event’s calculations are governed by different approaches such as the Naïve Bayes theorem and full joint distribution tables, the calculations involving independent events are quite easy to follow. New technology and data mining techniques […]

What is Buyer’s Remorse: Have you ever bought a new pair of shoes that you’ve been planning to buy for a while, but started regretting the purchase as soon as you arrive home? Maybe it was the best deal in the last three months, and you got a discount of over 30% on the original […]

List of Most Frequently Used Trading Animals in the Share Market (Bull, Bear, Stags, Wolves & More): Have you watched the movie ‘The Wolf of Wall Street” starring Leonardo DiCaprio as Jordan Belfort? If yes, then have you wondered why he has been referred to as a wolf in the movie? What’s an animal doing […]

Understanding Survivorship Bias: When it comes to investing and trading there are a lot of mathematical, statistical and psychological aspects involved. A balanced understanding of these would help an individual further strive in the world of investing and trading. Today we take a look at an important concept which is often overlooked known as Survivorship […]

Myth Solved – Why Investing in Stocks is NOT Gambling: How many times have you been discouraged from investing by being told that it is just another name for “Gambling”? For some of us if we had a dollar every time we heard that we’d have to classify it as a source of income. In […]