Studies of investor psychology have discovered that

Question

Quizplus · Accepted Answer

Studies of investor psychology, often referred to as behavioral finance, have indeed found that investors frequently trade too much due to overconfidence and other biases, sell their winning investments too soon while holding onto their losers for too long (a behavior known as the disposition effect), and become overconfident after experiencing success, leading to increased risk-taking and potentially poor investment decisions.

Studies of Investor Psychology Have Discovered That