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Definition of 'Behaviorist'
1. One who accepts or assumes the theory of behaviorism (behavioral finance in investing.)
2. A psychologist who subscribes to behaviorism.
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Investopedia explains 'Behaviorist'
When it comes to investing, people may not be as rational as they think. Behaviorists argue that investors often behave irrationally when making investment decisions thereby incorrectly pricing securities, which causes market inefficiencies, which, in turn, are opportunities to make money.
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Learn to overcome one of the biggest trading hurdles.
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Curious about how emotions and biases affect the market? Find some useful insight here.
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The efficient market hypothesis (EMH) suggests that stock prices fully reflect all available information in the market. Is this possible?
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