Every investor's worst enemy is themselves. No matter how much time and effort you've put into developing an investment strategy, if you don't have the right psychological approach, your plan means nothing.
With this being the case, understanding the psychology behind various investment decisions is critical to controlling your own emotions and enabling you as an investor to take advantage of other investors' mistakes.
One of the most prominent figures in the world of psychology is Nobel laureate, Daniel Kahneman.
Kahneman and Prospect Theory
Best known for his Prospect Theory; integration of cognitive psychology into economic analysis, Kahneman has spent his life trying to figure out what drives our decision making progress, and what can be done to refine the process.
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