What Is Anchoring Bias In Investing?
Anchoring bias is fixating on a reference price, like what you paid, and judging everything against
it. It distorts buy and sell decisions.
The anchor
You fixate on a reference price, often what
you paid, and judge everything against it.
The reality
The market does not care what you paid.
Only what it is worth now matters.
A Fear and Greed Index is one anchor-free read of the crowd.
Source: CFGI
Markets