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What is Anchoring Bias

Anchoring bias is a cognitive trap where people rely too heavily on the first piece of information they encounteru2014like a past stock price or an initial estimateu2014when making decisions. In investing, this can lead to holding onto losing stocks or misjudging market opportunities instead of evaluating current fundamentals objectively.

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What is Anchoring Bias

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  1. Read blog - https://navia.co.in/blog/anchoring-bias-in-investing-the-trap-of-sticking-to-old-prices/ What is Anchoring Bias?

  2. Read blog - https://navia.co.in/blog/anchoring-bias-in-investing-the-trap-of-sticking-to-old-prices/ What is Anchoring Bias? • Anchoring bias is a behavioral finance trap where investors fixate on one specific number — often their • Purchase price • A recent high (like a 52-week peak) • Or the IPO price • Even when new data emerges, the mind stays anchored to that number — clouding judgment and decisions.

  3. Read blog - https://navia.co.in/blog/anchoring-bias-in-investing-the-trap-of-sticking-to-old-prices/ Why Anchoring Bias is Dangerous • Investors may hold weak stocks too long, waiting for them to “get back” to their old price. • This causes missed opportunities as money remains stuck in underperforming stocks. • Anchoring limits objective, forward-looking decisions — leading to emotional, not rational, investing.

  4. How to Overcome Anchoring Bias (Part 1) Read blog - https://navia.co.in/blog/anchoring-bias-in-investing-the-trap-of-sticking-to-old-prices/ • Gold futures closed at ₹1,09,388, showing strong support above the rising trendline. • Current range: ₹1,08,600 – ₹1,10,700, signaling consolidation before another leg higher. • Outlook: Bullish, as long as prices stay above the trendline. • Tip: Use tight stoplosses near support for better risk management.

  5. Read blog - https://navia.co.in/blog/anchoring-bias-in-investing-the-trap-of-sticking-to-old-prices/ How to Overcome Anchoring Bias (Part 2) Set Rules in Advance: • Use stop-loss or exit strategies to remove emotion from your trades. Detach from IPOs or Highs: • Remember, past prices don’t guarantee future returns — the market rewards adaptability, not attachment.

  6. Disclaimer Investment in securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are for illustrative purposes and are not intended as recommendations. Brokerage will not exceed the SEBI prescribed limit. Navia Markets Ltd ,SEBI Registration No.INZ000095034-NSE Member code for CM, FAO & CD: 07708 - BSE Clearing No. for CM, FAO & CD: 6341-MCX Member ID: 45345 NSDL DP ID: IN300378-CDSL DP ID: 12086500-SEBI Registration No. for DP: IN-DP-311-2017-GST Registration number :33AAACM4739R2ZZ-Registered office: Ganga Griha, 4th & 5th Floor, No.9, Nungambakkam High Road, Chennai - 600 034 Email ID: ig@navia.co.in - Contact No: +91 70100 75500 https://bit.ly/naviadisclaimer Read blog - https://navia.co.in/blog/anchoring-bias-in-investing-the-trap-of-sticking-to-old-prices/

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