Recognising behavioural biases and mitigating them can take you a long way in the investing journey

In the go-go days of early 2008, Kaushik Kumar (name changed) bought shares of Reliance Infrastructure at about ₹2,500 a piece — close to the stock’s peak price. But the global financial crisis soon hit, and the stock started tanking. Kaushik did nothing initially, hoping the fall was temporary. But with the slide continuing, he decided to average his cost by buying more shares on dips. The st...