Overview
Retail investor behavior is a critical aspect of financial markets, especially during changing market conditions. Understanding how individual investors react to market fluctuations can provide insights into overall market dynamics. Retail investors often face unique challenges, including emotional ...
Key Terms
Example: Investors are optimistic during a bull market.
Example: A bear market can lead to widespread investor panic.
Example: Positive market sentiment can drive stock prices up.
Example: Overconfidence is a common cognitive bias among investors.
Example: Younger investors often have a higher risk tolerance.
Example: Warren Buffett is known for his value investing approach.