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RupeeCase Learn/Path 08/Intermediate

Behavioural Finance and Investor Psychology

Understand the psychological biases that cost investors money, and build systems to overcome them.

  • 6modules
  • 58 minof reading
  • 26question path test
  • Freewith a certificate
Start at 8.1See the stops

01The line

6 stops, in order.

The mistakes you will make even after you know better. Loss aversion, herd behaviour, the disposition effect, and how a rules-based process protects you from the worst of them.

0of 6 done on this device

  1. 8.1Why Investors Lose, Introduction to Behavioural FinanceThe gap between knowing and doing in investing11 min
  2. 8.2Loss Aversion and Prospect TheoryWhy losses hurt more than gains feel good11 min
  3. 8.3Cognitive Biases: Overconfidence, Anchoring and Recency BiasOverconfidence, anchoring, recency and availability10 min
  4. 8.4Herd Behaviour and Market BubblesWhy crowds drive bubbles and how to think independently8 min
  5. 8.5The Disposition Effect and How to Beat ItSelling winners too early and holding losers too long9 min
  6. 8.6Building Systems That Protect You From YourselfChecklists, rules, and frameworks to remove emotion9 min, path test

02Outcomes

What you will be able to do.

  • 01Identify loss aversion, prospect theory, and why losses hurt 2x more
  • 02Recognise anchoring, confirmation bias, and overconfidence in your own decisions
  • 03Understand herd behaviour and how it drives market bubbles
  • 04Build checklists and rules-based systems that remove emotional decisions

03Certificate

Pass the path test.
Keep the proof.

Complete the 6 module quizzes, then take the 26 question path test at the end of Module 8.6. Pass to earn your certificate as a PNG with your name on it.

  1. 1Pass the 6 module quizzes7 of 10 on each, retake any time
  2. 2Take the 26 question path test19 correct to pass, no timer, at the end of module 8.6
  3. 3Get the certificateYour name, the path, the date, an ID and a QR code to verify it; PNG or PDF
Jump to the path test About the certificates

04Questions

About Path 08.

Why do smart investors lose money?

Often because of behaviour: there is a gap between knowing and doing. Path 8 names the biases behind it, including loss aversion, overconfidence, anchoring, recency, herd behaviour and the disposition effect.

What is the disposition effect?

The disposition effect is selling winners too early and holding losers too long. Module 8.5 covers it alongside mental accounting.

How can rules protect me from my own biases?

Rules commit you to a decision before emotion arrives. Module 8.6 covers checklists, rules and frameworks that remove emotion. It is the same idea behind a quantitative index, where fixed rules and a set schedule replace feel.

Explore next

Where to go next.

Pillar guideBehaviour and Business13 modules across paths 8, 9 Apply it on RupeeCaseAllcapRules beat feel, no discretion. Model, back tested.

Education only, not investment advice. RupeeCase is a technology platform operated by QC Alpha Technologies Pvt Ltd; it is not a fund, a PMS or a SEBI registered investment adviser. Model returns are back tested and not a promise of future returns. Figures carry the date they were checked.