Psychology
Anchoring
Quick Definition
A cognitive bias where people fixate on a reference point (anchor) when making decisions. Traders often anchor to entry prices, leading to irrational holding of losers or premature selling of winners.
Example
Anchoring to her original entry price, she refused to sell even as the stock dropped 50%.
7,422 views
See Anchoring in Action
Apply your knowledge with real-time market signals on Banana Farmer.
View Top Signals