Buying high in the stock market caused by overconfidence
Monday, April 11, 2016 - 15:11
in Mathematics & Economics
The golden rule for investing has always been "buy low, sell high." Past research has shown that many people make the common investing mistake of selling stocks at a low price after the stock market has experienced a decline. However, little is known about what causes people to make mistakes on the other end of the spectrum: buying stocks at a high price.