An investor who trades stocks in his/her portfolio several times per week with every market swing is practicing hindsight bias.

Question

Quizplus · Accepted Answer

Hindsight bias refers to the tendency to believe, after an event has occurred, that one would have predicted or expected the outcome, whereas the investor described is engaging in frequent trading based on market movements, which is more indicative of active trading or possibly market timing, not hindsight bias.

An Investor Who Trades Stocks in His/her Portfolio Several Times