◈ GLOSSARY · MONEY MINDSET
Anchoring Bias.
A definition, in plain English — with the books that teach it.
Reviewed by ClearValue Editorial Team · Jun 27, 2026
◈ DEFINITION
What it means
Definition
The tendency to lean too hard on the first number you see when making a decision — your 'anchor' — even when that number is irrelevant. In money, the anchor is usually the price you paid or a high-water mark you remember. The honest caveat: the market doesn't know or care what you paid; future returns depend on what an asset is worth now, not on your anchor.
◈ IN PRACTICE
Example
You bought a stock at $80 and it's now $45. You tell yourself you'll sell 'when it gets back to $80.' That's anchoring — $80 isn't a price target, it's a memory. The right question is whether $45 is a good price to own it today.
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