Behavioral Finance

Behavioral finance asks why people make the money decisions they do, and why those choices so often differ from what a purely rational investor would do. This section explains the research behind cognitive biases such as anchoring, loss aversion and overconfidence, how they show up in prices, markets and everyday financial choices, and what the evidence says about making better decisions. Each article is built around a specific study or idea, explained in plain language, and ends with a way to test it on yourself. We link to the original research wherever we can. Everything here is education about how people think, not financial advice.