Month: November 2020

Explaining Loss Psychology in Investing 

Investing also has its emotional side, and this is called loss psychology. This the negative sentiment associated with recognizing a loss and the psychological effects of such to the investor.¬† Humans tend to have loss aversion bias, which is one of the many biases that behavioral finance studies. According to research, the pain of losing […]Read More

Forex Trading: The Use of Interest Rate Parity

The interest rate parity or IRP is the fundamental equation that governs the relationship between interest rates and currency exchange rates. Also, the basic premise of interest rate parity is that hedged returns from investing in a variety of currencies must be the same, regardless of the level of their interest rates. Then, there are […]Read More