Behavioural finance

Explore how emotion, bias and uncertainty can influence money decisions.

Why study behaviour alongside money?

Knowing a definition does not guarantee a thoughtful decision. Studying bias helps you notice how fear, confidence and other people can affect your reasoning.

Read the lessons

• Why risk management beats picking stocks
• Position sizing
• Stop losses
• Risk-reward ratios in practice
• Drawdown
• Kelly criterion
• Diversification (& its limits)
• Correlation
• Fear & greed
• FOMO
• Revenge trading
• Overconfidence after a win streak
• Trading journal
• Sleep, screen time, and decision quality
• When to walk away from the market
• Meditation & focus for traders
• Behavioural finance
• Loss aversion
• Anchoring bias
• Recency bias
• Confirmation bias
• Herd mentality
• Overconfidence bias
• Hindsight bias
• Sunk cost fallacy
• Mental accounting
• Framing effect
• Narrative bias
• Availability heuristic
• Illusion of control
• Patience as edge
• Second-order thinking
• Mental models for investors
• Pre-mortem
• Inversion
• A reading list to build the mind

Put the idea into practice

Explore the related MarketPlay experience, or try a public learning tool.

Primary reading

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