The concept of behavioral finance is a relatively new field of study that combines psychological theory with conventional economics. We may not realize it, but we all have certain biases as investors, and that impacts the financial decisions we each make. Even the most disciplined investor may have difficulty overcoming personal biases – it’s how…

Cash is cash, right? But sometimes, we treat money differently depending on where it came from or what we intend to do with it. When that happens, mental accounting may be at play. Our next post in our behavioral bias series: There’s More to Thinking Than You Think takes a look.

In this series, we explore some of the most common behavioral biases to which people find themselves susceptible. Today we look at Loss Aversion.