JJEM: Special Edition 1 (December 2023)
JJEM: Special Edition 1 (December 2023)
2023-12-08
Behavioral Finance: Navigating the Emotional Landscape of Investing
Ms.Shruthi k and Ms.Tejahreekamath
This paper explores the profound impact of human emotions on financial decision-making, shedding light on the intricate interplay between psychology and investment. In this comprehensive examination, we delve into the behavioral biases, cognitive heuristics, and emotional triggers that shape investment choices, often deviating from rational economic models. By understanding these psychological dynamics, investors, financial professionals, and policymakers can navigate the intricate landscape of investing more effectively. This abstract provides a glimpse into the book's exploration of behavioral finance, its insights, and its practical implications for enhancing investment strategies. The research presented here sheds light on the divergence from conventional economic rationality and offers a more profound comprehension of the reasons behind people's seemingly illogical financial actions. This paper provides investors, financial professionals, and policymakers with the necessary tools to identify, manage, and lessen the influence of emotions on financial results by traversing the emotional terrain of investment. Readers will be able to make more informed and emotionally intelligent financial decisions by gaining a better understanding of the dynamic dynamics influencing the investment landscape through a combination of theory, real-world examples, and practical solutions. For individuals who aim to achieve financial success by understanding the intricate relationship between psychology and finance, "Behavioural Finance: Navigating the Emotional Landscape of Investing" is a crucial resource.
Behavioral Finance, Cognitive Heuristics, Investor Psychology, Financial Emotions ,Rationality