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 TOPICS

Among the many important findings made by behavioural finance and economics researchers, perhaps the most important is known as the “Bird in the Bush” syndrome, which highlights the wide discrepancies between decisions to acquire resources compared to decisions to keep resources, signifying the significant aversion to loss displayed by people generally. This is especially prevalent when the loss is related to something which would cause a heavy emotional price to be paid. This goes some way in explaining why the typical investor will be reluctant to sell shares if doing so would convert a paper loss into a nominal one, and why house prices normally do not fall on the back of low demand due to people being unwilling to sell a possession with a high level of emotional value such as their home.

Scroll to Top