Whether you’re aware of it or not, finance is a mental game as much as it is based in cold, hard math. Advisors must learn and understand the power of the mind and how it affects their behavior when it comes to making investment decisions. Behavioral finance is an increasingly talked-about and studied field and understanding the nuances of how to apply this knowledge are growing more important with each passing day.
Let’s look at five tips from behavioral finance professor Victor Ricciardi on how to understand and attack inherent biases in order to run a more successful firm.
April J. Rudin, Founder and President of The Rudin Group, is a financial services marketing strategist.