Introducing behavioral finance

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SentiTrade automatically interprets tonality in financial news. Investors use the software to get an overview of current market sentiment. Specifically, SentiTrade is Behavioral Finance Indicator and is used to warn of exuberant optimism and conversely, point out opportunities created by exaggerated pessimism.

Transcript of Introducing behavioral finance

Page 1: Introducing behavioral finance

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Whysocialandemo,onalfactorsinfluenceinvestmentdecisions...

BehavioralFinanceforInvestors

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ThreestepexplanaBon

1.  HunBng&gathering2.  Investmenttrends3.  Herdvs.Efficiency

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Deeplyrootedhumanbehavior

Huntergathersociety:ThetribeprovidesfoodandprotecBon,i.e.youbestfollowthegroup!

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InvestmentTrends

Institutional buying

Day Traders

Financial publications

Public participation

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Whyarewedoingthis?

GeneBcprogramming:"Ifthey‘redoingit,it‘sprobablyOK"

Financialmarkets:Seekingefficiency,notconsensus

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Behavioralormisbehavioral?

BehavioralFinanceTheoryidenBfiesbehaviorsthatleadtobadinvestmentdecisions!

VisitSenBTrade.comandintegratebehavioralfinanceprinciplesinyourinvestmentstrategy

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