Behavioral Finance: Cognitive Biases in Investing

Loss Aversion

Losses hurt ~2× as much as equivalent gains feel good (Kahneman & Tversky). Leads to holding losers too long and selling winners too early.

Anchoring

Fixating on an irrelevant number (e.g., your purchase price). "I'll sell when it gets back to ₹100" — the market doesn't care what you paid.