Stocks To Riches Insights On Investor Behaviour By Parag Parikh Pdf !!install!! -

Anchoring happens when an investor relies too heavily on a specific piece of information—usually the first price they saw or the historical peak price of a stock. For example, if a stock falls from $500 to $250, an anchored investor views it as a bargain, ignoring the possibility that the company’s underlying fundamentals may have fundamentally broken down. 6. Availability Heuristic

Before any trade, wait 24 hours. Parikh argued that 90% of bad trades are impulse decisions made in the first 5 minutes of market panic. Anchoring happens when an investor relies too heavily

A rising tide lifts all boats. During a bull market, many investors mistake a lucky streak for financial genius. This overconfidence leads to excessive risk-taking, over-leveraging, and a lack of proper diversification. 5. Anchoring Bias Availability Heuristic Before any trade, wait 24 hours

Don't fall in love with a "cheap" number. Sometimes you have to pay a fair price for excellence. During a bull market, many investors mistake a

Over 20 years, the "Do Nothing" investor almost always won. Why? Because trading generates costs (taxes, brokerage, slippage) and, more importantly, decision fatigue .