Bias for ActionA bias for action is a tendency for people to think of strategy as actions without considering possible inaction.
ExampleInvestors commonly feel they need to execute trades to make money. For example, a bias for action may drive an investor to buy a stock when they aren't sure it is priced fairly. In many cases, a do nothing strategy may be a superior choice.
|Overview: Do Nothing Strategy|
|Definition (1)||A strategy to do nothing.|
|Definition (2)||Strategic planning that results in a decision to do nothing.|
|Definition (3)||The strategic choice to hold your current position without making a change.|
|Related Concepts||Bias For ActionInvestingBusiness StrategyDecision MakingDo Nothing Farming|