Behavioural Finance: Anchoring

Anchoring is the tendency to become attached to a single piece of information that may not be accurate or relevant in trying to draw an appropriate conclusion.
When making decisions you should always look to find multiple inputs. Don’t just rely on one input because that single input could skew your judgement completely.
Conclusion: Don’t fixate on a single piece of information. Re-evaluate decisions and positions, have the fundamentals changed?
Source: www.behaviouralfinance.com
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