Maximize Lifelong Wealth With Science-Based Investment Secrets

Behavioral Finance and Risk Management

Behavioral finance examines how psychological factors influence investors' decisions. Understanding these biases can help in developing strategies that mitigate their impact. For example, the tendency to sell winning investments too early or hold onto losing ones for too long can be counteracted by setting predefined rules based on data-driven insights. This disciplined approach helps manage risk and enhances long-term portfolio performance³.