You’ve seen it before—a seasoned trader or investor seems to have an uncanny ability to catch the market at just the right moment. That isn’t some kind of market mysticism; it’s technical analysis at play.
Investing, some say, is part precision, part instinct. But really? It’s a battleground for the mind, a psychological maze where emotions rule the day. One moment, you’re soaring on the thrill of a booming market, hands raised in triumph, feeling invincible.
Investing isn't just about numbers and market trends, it's also about understanding the human mind. Behavioral finance is a field that explores how psychological factors influence our financial decisions, often leading us to act in ways that are not entirely rational.
P/E (Price-to-Earnings) ratio is one of the more commonly used benchmarks, it is not always the most accurate, especially for companies that have not turned a profit or are not consistent in their earnings.
