Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Anchoring bias is the tendency to rely too heavily on an initial piece of information (like a stock’s purchase price) when making subsequent financial decisions.
Getting mentally stuck on a number, like your buying price, even when it’s no longer relevant.
Common in investing when a stock’s original purchase price anchors decisions rather than its current fundamentals or future outlook, potentially causing suboptimal hold/sell choices.
An investor refuses to sell a stock below their original ₹500 buy price, even though fundamentals have deteriorated.
Getting mentally stuck on a number, like your buying price, even when it’s no longer relevant.
Anchoring Bias helps you evaluate products, compare options, and make informed decisions aligned with goals, tax rules, and risk tolerance in the Indian financial system.