It is easy to think about investment behaviour as a problem for the individual, a risk that we need to manage to avoid poor choices and costly mistakes. But it is much more than that. The challenges that we encounter as solo investors – our tendency to extrapolate, our susceptibility to stories, our obsession with random short-run outcomes (I could go on) – also operate in aggregate. They impact everyone. Major market anomalies arise because of group behaviour. If we want to exploit behavioural opportunities and avoid the risks, we need a framework for recognising them.
More here – Behavioural Investment