Decision-making psychology on financial markets

1. Decision-making psychology on financial markets Rossohin V.V. Rylkin A.Y. Vlasova J.A.

2. The main goal 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

3. Decision-making psychology on financial markets

4. Psychological biases Overconfidence “Don’t confuse brains with a bullmarket!” Figure 1. Dow Jones Industrial Average Decision-making psychology on financial markets

5. Psychological biases 2. Decision-making psychology on financial markets

6. Psychological biases“Information can mislead people” Decision-making psychology on financial markets Figure 2: Gazprom (GSPBEX)

7. Psychological biases 3. Decision-making psychology on financial markets

8. Psychological biasesAttachment bias Figure 3. The INTURAL corporation Decision-making psychology on financial markets

9. One important reason thatlearning from such mistakes is difficult Cognitive dissonance The brain remembers actions better than the reasons for those actions. Decision-making psychology on financial markets

10. Emotions Decision-making psychology on financial markets

11. EmotionsSeeking pride Figure 4. EESR Decision-making psychology on financial markets

12. EmotionsAvoiding regret Figure 5. GMKNorNik Decision-making psychology on financial markets

13. Emotions Decision-making psychology on financial markets

14. Simplification The bias of representativeness Mental accounting Decision-making psychology on financial markets

15. Mood and optimism Bad mood, pessimism usually critical and detailed analysis Optimism Figure 6. RTSIND Decision-making psychology on financial markets

16. The main qualities of a successful trader Importance Decision-making psychology on financial markets

17. Conclusion In our point of view, 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

18. Thank you for your attention! Decision-making psychology on financial markets