# Behavioral Biases

*Saving & Investing — Finicade finance glossary*

The systematic mental shortcuts that lead investors astray — overconfidence, herding, loss aversion, anchoring. They're why markets aren't perfectly rational and why knowing your own biases is half the battle.

**Also known as:** behavioral finance

**Related terms:** [Market Efficiency](https://finicade.com/glossary/market-efficiency), [Risk Tolerance](https://finicade.com/glossary/risk-tolerance)

**Taught in:** Charter Climb — Behavioral Finance & Fintech

Source: https://finicade.com/glossary/behavioral-biases