Behavioral Finance 101: How Emotions and Biases Shape Financial Decisions

Why do smart people make irrational money decisions? Why do markets boom and crash in ways that defy logic? This video offers a deep yet accessible introduction to behavioral finance—the field that blends psychology with economics to explain how real people actually behave in financial settings.

We explore key concepts like overconfidence, anchoring, loss aversion, and herd behavior, showing how these psychological forces impact everything from personal investing to global financial markets. You’ll learn why traditional finance models based on rational decision-making often fall short, and how behavioral insights can help us make better choices, avoid common pitfalls, and design smarter financial policies.

Whether you're a student, investor, policymaker, or just curious about the human side of finance, this video will give you a clear foundation in behavioral finance, complete with real-world examples and practical takeaways.

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