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Introducing behavioral finance

Jan 15, 2015

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Economy & Finance

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.
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Page 1: Introducing behavioral finance

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Page 2: Introducing behavioral finance

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Whysocialandemo,onalfactorsinfluenceinvestmentdecisions...

BehavioralFinanceforInvestors

Page 3: Introducing behavioral finance

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ThreestepexplanaBon

1.  HunBng&gathering2.  Investmenttrends3.  Herdvs.Efficiency

Page 4: Introducing behavioral finance

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Deeplyrootedhumanbehavior

Huntergathersociety:ThetribeprovidesfoodandprotecBon,i.e.youbestfollowthegroup!

Page 5: Introducing behavioral finance

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InvestmentTrends

Institutional buying

Day Traders

Financial publications

Public participation

Page 6: Introducing behavioral finance

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Whyarewedoingthis?

GeneBcprogramming:"Ifthey‘redoingit,it‘sprobablyOK"

Financialmarkets:Seekingefficiency,notconsensus

Page 7: Introducing behavioral finance

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Behavioralormisbehavioral?

BehavioralFinanceTheoryidenBfiesbehaviorsthatleadtobadinvestmentdecisions!

VisitSenBTrade.comandintegratebehavioralfinanceprinciplesinyourinvestmentstrategy

Page 8: Introducing behavioral finance

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