lukelehepuu

Human Emotions - Anchoring

FX:EURUSD   Fx Euro/Dolar U.S.
60 1 8
Anchoring is the tendency for people to rely too heavily on readily available
information when making a decision involving uncertainty. They may anchor a
recent price and make decisions on the basis of how the current price relates
to that price. This is one of the reasons my friends had such difficulty selling
their stocks: They were anchoring on the recent highs and comparing the current
price with those highs. After they made that comparison, the current price always
looked too low.
Thanks alot
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