Skillsfirst Level 5 Diploma in Financial Trading (RQF) - Module 4 - Technical Analysis
Skillsfirst Level 5 Diploma in Financial Trading (RQF) - Module 5 - Psychology
Skillsfirst Level 5 Diploma in Financial Trading (RQF) - Module 6 - Risk and Money Management
2 of 2

BEHAVIOURAL FINANCE AND ECONOMICS

Closely related fields, behavioural economics and finance look to study the effects of biases which operate on 3 key human levels:

  • Social
  • Cognitive
  • Emotional

Through such studies, researchers try to understand economic decisions and their impact on markets, prices, returns, and the overall allocation of resources. Due to the nature of this research, the degree of rationality displayed by market participants is also a key factor, seeing as it represents the very basis of economic theory. However, behavioural economics differs from other types in that the latter integrates psychology alongside more traditional economic theory.

Scroll to Top