9. Improved understanding of market cycles A psychological understanding of market behavior helps in
9. Improved understanding of market cycles
A psychological understanding of market behavior helps investors recognize that such fluctuations are normal. They do not panic during downturns and do not get greedy during booms, thus making better decisions overtime.
10. Increased Confidence
When investors are informed about how emotions affect their decisions, they can rely on facts and strategy when making decisions, increasing their comfort level. This could decrease the fear of mistakes and overall comfort in investing.