Anchoring


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Anchoring

The act of basing an investment decision on irrelevant information. For example, if one bases the value of a stock on its price a year ago, one is practicing anchoring. This can be a dangerous practice, but it is also easy to do. Anchoring is a concept in behavioral economics, which states that people often make decisions based on their perceptions and feelings in addition to (and sometimes instead of) facts.
References in classic literature ?
The coun- try at the back of Brenzett is low and flat, but the bay is fairly well sheltered from the seas, and occa- sionally a big ship, windbound or through stress of weather, makes use of the anchoring ground a mile and a half due north from you as you stand at the back door of the "Ship Inn" in Brenzett.
The company used one of its anchoring rigs to stabilize the anchor installation motor in the strong current as well as provide down pressure.
I use 300 feet of 1/2-inch diameter nylon rope, for most anchoring jobs.