The anchoring bias is relying excessively on the first piece of information ("anchor") that surfaces when making decisions.
Consequence:
• Investors end up holding on to a stock and won't sell, thinking that once it hits its previous highest price, they'll have made money.
• Expecting prices to go unrealistically high or low when purchasing or selling.
The anchoring bias is relying excessively on the first piece of information ("anchor") that surfaces when making decisions.
Consequence:
• Investors end up holding on to a stock and won't sell, thinking that once it hits its previous highest price, they'll have made money.
• Expecting prices to go unrealistically high or low when purchasing or selling.
The anchoring bias is relying excessively on the first piece of information ("anchor") that surfaces when making decisions.
Consequence:
• Investors end up holding on to a stock and won't sell, thinking that once it hits its previous highest price, they'll have made money.
• Expecting prices to go unrealistically high or low when purchasing or selling.
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