2 bullet points… 2nd one seems off…
-Traders tend to exhibit availability bias and recency effect as they assume recent past price behaviror will continue while investment professionals tend to assume mean reversion.
-Hindsight bias as market participants overemphasize recent price behaviror, assuming it will continue and buy(sell) what has been going up(down), leadinf to reend chasing and overtrading.
My quesitons i how is the seocnd one hindsight bias? i thought hindsight was just remembering what you want… selective memory?