This article written by David Pieper was originally published in the July 2012 issue of Traders' Magazine.
The field of Behavioural Finance, is a relatively new science and it combines economics with psychology. The psychologist Amos Tversky and Nobel Prize Winner in Economics Daniel Kahnemann developed the basics of behavioural finance. The economists showed behaviour patterns that had, up until then, been ignored by supporters of rational decisions. These behaviour patterns develop because logical thinking – especially in situations of uncertainty – is often overpowered and overruled by emotion. Therefore, a deeper look at this subject is not only interesting for economists, but also for investors and traders.
- David Pieper David Pieper has been busy studying the stock market since the late 90s. As early as during his business studies at university and later during a career as an investment analyst at a bank, he combined fundamental analysis with the benefits of technical analysis. Mr Pieper focuses on trading CFDs and works as a freelance writer in the field of technical analysis.
The field of Behavioural Finance, is a relatively new science and it combines economics with psychology. The psychologist Amos Tversky and Nobel Prize Winner in Economics Daniel Kahnemann developed the basics of behavioural finance. The economists showed behaviour patterns that had, up until then, been ignored by supporters of rational decisions. These behaviour patterns develop because logical thinking – especially in situations of uncertainty – is often overpowered and overruled by emotion. Therefore, a deeper look at this subject is not only interesting for economists, but also for investors and traders.
