Investment decisions are made by investors and investment managers.

Investors commonly perform investment analysis by making use of fundamental analysis, technical analysis and gut feel.

Investment decisions are often supported by decision tools. The portfolio theory is often applied to help the investor achieve a satisfactory return compared to the risk taken.

Investment decision biases

The promise of abnormally high rate of return may lead to cognitive dissonance. Bad decisions are often followed by a feeling of investors remorse..

See also

• Behavioral finance
• Cognitive bias
• Relative strength
• Ratio analysis