I had an opportunity to hear Parag Parikh this week and I learnt that how human psychology is the biggest factor which determines his decisions when it comes to investments . From the stock markets point of view he gave some good examples and reasons why investors behave irrationally. Here is a very nice video from Parag Parikh who is talking on Decision Making process in Stock Markets. He talks about various aspects of Behaviourial Finance and how it applies in Stock Market. Its a good watch.
There are many factors which govern our decisions of buy/sell/hold in Equity markets, it can be Direct equity, Equity Mutual funds which we hold or in general thinking about stock markets , but out of all the factors, The way we think and act because of herd mentality is the biggest decider of how we will perform. Does this apply to you as well ? You can read more about behavioural Finance on this his website ppfas.com
Comments please . How do you take decision in stock market ? Do you make irrational decisions in the way its told in the vidoe ? Please share.