Level 6, Unit 6-13A, V03 Designer Office,
Sunway Velocity, Off Jalan Lingkaran SV,
55100 Kuala Lumpur,
Wilayah Persekutuan, Malaysia.
+6011-1424 9879
Nine Five Management Consultancy Services
Level 6, Unit 6-13A, V03 Designer Office,
Sunway Velocity, Off Jalan Lingkaran SV,
55100 Kuala Lumpur,
Wilayah Persekutuan, Malaysia.
Level 6, Unit 6-13A, V03 Designer Office,
Sunway Velocity, Off Jalan Lingkaran SV,
55100 Kuala Lumpur,
Wilayah Persekutuan, Malaysia.
Foundation in COMMODITY Fundamental Analysis
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Programme Overview
Behavioural finance uses psychology to explain why investors make bad financial decisions. In this course, explores the basics of behavioural finance and how it impacts market performance as well as individual decision-marking and personal investment strategy.
Learn practical investment strategies to remove bias and make sure you are making sound trading decisions.
Behavioural Economics applies concepts of psychology to provide insights and certain frameworks to the field of finance and economics.
Behavioural economics, the study of the effects of psychological, social, cognitive, and emotional factors on the economic decisions of individuals and institutions and the consequences for market prices, returns, and resource allocation.
Make rational, not emotional, decisions with your money—especially when you are under pressure
Understand the psyche of the market so you can learn how to join the Smart Money Circle and consistently take money out
Incorporate Psychological Analysis into your overall trading and investing strategy so you can make smarter decisions on and off Wall Street.
After completion of this programme delegates will be able to:
Understand how to utilize insights into the psychological processes and biases underlying their decisions, in the development of financial trading, investing, business and marketing strategies
Apply this knowledge to topics in economics, finance and management.
People who should attend:
- This course is designed to help students with little or no finance background to learn the basics of investments.
- Traders who are starting out and Intermediary level Traders who are not yet consistently profitable.
- Anyone who wants to Day-Trade or Swing-Trade the FOREX Market.
- Anyone who wants to learn the most important concepts that are needed to become successful in trading.
- Take this course if you want to improve your trading with fundamental analysis you can easily know the long-term direction of the market
What you'll learn
- Behavioural finance is the study of the influence of psychology on the behaviour of financial practitioners. In the course, you will learn about the wide range of decision making biases and information processing errors that influence our financial decision making.
- To study the role of behavioural finance in the financial markets.
- To identify the changing behaviour of the people while taking decisions according to the cognitive psychologist.
- To study the decision behaviour system of the investor’s based on reactions.
- To know the role or actions of the rational investor in efficient markets in different situations.
- Behavioural finance asserts that rather than being rational and calculating, people often make financial decisions based on emotions and cognitive biases.
- Behavioural finance is useful in analysing market returns in hindsight, but has not yet produced any insights that can help investors develop a strategy that will outperform in the future.
- One of the key aspects of behavioural finance studies is the influence of psychological biases.
- Trading psychology refers to the emotional component of a trader’s decision-making process that determines the success or failure of a trade.
INTRODUCTION TO BEHAVIOURAL FINANCE
What Is Behavioural Finance?
Is about making the right decisions that are free from any kind of biases and errors. It helps in understanding investor behaviour better and helps in improving the financial capability of individuals.
It explains the role and impact of psychological biases and sociological influences underlying the financial behaviour of both individual and institutional investors.
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Course Duration |
| 6 Hours |
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Intake |
| Every Calendar Month |
Course Outline (Knowledge Domains)
INTRODUCTORY CONCEPTS AND PRINCIPLES IN FOUNDATION IN COMMODITY FUNDAMENTAL ANALYSIS.
SECTION A
1. What are the building blocks of behavioural finance
The two building blocks of behavioural finance are
1.1 Cognitive psychology (how people think)
1.2 Limits to arbitrage (when markets will be inefficient).
2. Understanding Behavioural Finance
Behavioural finance can be analysed from a variety of perspectives. Stock market returns are one area of finance where psychological behaviours are often assumed to influence market outcomes and returns but there are also many different angles for observation.
One of the key aspects of behavioural finance studies is the influence of biases. Biases can occur for a variety of reasons.
SECTION B
1. Behavioural Finance Concepts
Biases can usually be classified into one of five key concepts. Understanding and classifying different types of behavioural finance biases can be very important when narrowing in on the study or analysis of industry or sector outcomes and results.
Behavioural finance typically encompasses five main concepts:
1.1 Mental accounting
1.2 Herd behaviour
1.3 Emotional gap
1.4 Anchoring
1.5 Self-attribution
2. Behavioural Finance in the Stock Market
The efficient market hypothesis (EMH) says that at any given time in a highly liquid market, stock prices are efficiently valued to reflect all the available information. However, many studies have documented long-term historical phenomena in securities markets that contradict the efficient market hypothesis and cannot be captured plausibly in models based on perfect investor rationality, use to help analyse market price levels and fluctuations for speculation as well as decision-making purposes.
SECTION C
1. What does behavioural finance tell us?
Behavioural finance helps us understand how financial decisions around things like investments, payments, risk, and personal debt, are greatly influenced by human emotion, biases, and cognitive limitations of the mind in processing and responding to information.
2. How does knowing about behavioural finance help?
By understanding how and when people deviate from rational expectations, behavioural finance provides a blueprint to help us make better, more rational decisions when it comes to financial matters.
2.1 Two Kinds of Knowledge
We can divide knowledge in the context of finance into two kinds:
- 2.1.1 Financial facts knowledge.
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2.1.2 Human-behaviour knowledge.
SECTION D
1. What is Trading Psychology?
Trading psychology refers to the mental state and emotions of a trader that determines the success or failure of a trade. It represents the aspects of a trader’s behaviour and characteristics that influence the actions they take when trading securities.
2. TRADING AND INVESTING PSYCHOLOGY
1.1 How to Avoid Emotional TRADING AND Investing
1.2 Removing the Barriers to Successful TRADING AND Investing
1.3 Break Bad Trading Habits and Follow Your Rules
3. PSYCHOLOGY AND TECHNICAL ANALYSIS
2.1 Technical Analysis That Indicates Market Psychology
4. How Bias Affects Trading
Bias is defined as a predetermined disposition of one position over another.
The trader may end up acting on emotions rather than on fundamental or technical analysis.
The key types of biases that affect trading
4.1 Negativity bias
4.2 Gambler’s fallacy
4.3 Status quo bias
5. Improving Trading Psychology
Traders or investors can improve their trading psychology by identifying their own emotions, biases, and traits that can determine a trade’s success or failure.
Methods can use to improve trading psychology:
5.1 Identify personality traits
5.2 Create a trading plan
5.3 Conduct research
Rational investors learn fundamental and technical analysis in their investment decisions.
In fundamental analysis, consider economic conditions, industry analysis, and company analysis.
Technical analysis focuses on the historical movement of stock price to predict the future price by using the pattern of a chart.