Rossohin V.V. Rylkin A.Y. Vlasova J.A.
Rossohin V.V. Rylkin A.Y. Vlasova J.A.. Analysing the actions of traders made under the influence of psychological biases, emotions and other main factors.
Jan 03, 2016
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Rossohin V.V.Rylkin A.Y.Vlasova J.A.
Analysing the actions of traders made
under the influence of psychological biases,
emotions and other main factors and planning
the way to avoid these problems
Decision-making psychology on financial markets
Decision-making psychology on financial markets
Psychological biases1. Overconfidence
“ “Don’t confuse brains with a bullDon’t confuse brains with a bull market!market!””
Figure 1. Dow Jones Industrial Average
Decision-making psychology on financial
markets
2.
Psychological biases
Decision-making psychology on financial
markets
Psychological biases“Information can mislead people”
Figure 2: Gazprom (GSPBEX)
Decision-making psychology on financial
markets
Psychological biases3.
Decision-making psychology on financial markets
Psychological biasesAttachment bias
Figure 3. The INTURAL corporationDecision-making psychology on
financial markets
One important reason thatlearning from such mistakes is difficult
The brain remembers actions
better than the reasons for those actions.
Decision-making psychology on financial
markets
Emotions
Decision-making psychology on financial
markets
Figure 4. EESR
EmotionsSeeking pride
Decision-making psychology on financial
markets
Figure 5. GMKNorNik
EmotionsAvoiding regret
Decision-making psychology on financial
markets
Emotions
Decision-making psychology on financial
markets
Simplification The bias of representativeness
Mental accounting
Decision-making psychology on financial
markets
Mood and optimism1. Bad mood, pessimism usually critical and detailed
analysis 2. Optimism
Figure 6. RTSIND
Decision-making psychology on financial
markets
The main qualities of a successful
trader
Decision-making psychology on financial
markets
Quickness of reaction
Discipline
Experience
Concentration
Steadiness
Readiness to risk
Intuition
The ability to work in a team
The ability to process data
Learning capability
Communication skills
Integrity
Independence
Analytical thinking
Aggression
Optimism
Mathematical abilities
Curiosity
Managerial abilities
Computer skills
Social skills
Importance
ConclusionIn our point of view, system trade system trade is one of the
best decisions in this situation. This system could
exclude emotional problems, of course, if a trader has
enough discipline to follow the system.
Decision-making psychology on financial
markets
Decision-making psychology on financial markets
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