Stocks To Riches Insights On Investor Behaviour By Parag Parikh Pdf |link|

Day trading, frequent portfolio churn, and timing the market are symptoms of overconfidence. Parikh shows data proving that the more you trade, the lower your returns. The investor who thinks they can "beat the market" every quarter is the one who ends up broke.

Most novices think: "Low P/E = Cheap stock = Good buy." Parikh said: Day trading, frequent portfolio churn, and timing the

Humans are evolutionary hardwired to seek safety in numbers. In the stock market, this leads to disastrous bubbles and crashes. Investors flock to sectors simply because "everyone else is making money there" (e.g., the dot-com bubble of 2000, or various tech and crypto crazies in recent history). Parikh emphasizes that by the time the crowd arrives, the smart money is already leaving. 4. Overconfidence Bias Most novices think: "Low P/E = Cheap stock = Good buy