6 Daniel Kahneman principles to follow to avoid losing money
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Daniel Kahneman, a renowned psychologist, identified six principles to help investors avoid big money losses. The principles include: 1) The Halo Effect, which refers to the tendency to like everything about a person or management towards which investors have an affinity; 2) The law of small numbers, which involves jumping to big conclusions about a stock based on limited data or sample; 3) Sunk cost fallacy, which is the tendency to keep investing in something even when it is past its prime; 4) Illusion of pundits, which is the belief in star commentators' ability to predict market movements; 5) Loss aversion, which is the preference for sure-shot but sub-optimal returns over high returns with a slight chance of loss; and 6) Overconfidence, which leads investors to believe that they won't experience losses. These principles can help investors make better decisions and avoid significant financial losses.

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https://m.economictimes.com/wealth/save/6-daniel-kahneman-principles-to-follow-to-avoid-losing-money/articleshow/108889362.cms