Investors apply mental shortcuts for decision making rather than objectively reviewing the easily accessible
information. Different methods that people use to reduce the effort related to their task called heuristics.
(Kahneman and Tversky, 1979) illustrate that application of heuristics may cause poor decisions.
Implementation of heuristics decisions cause due to shortage of time. The components of heuristics are
(Gambler’s fallacy, availability bias, anchoring representativeness and overconfidence).