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Behavioural Finance

People, generally, focus on the short term and are very prone to biases. For example, people are usually very overconfident, and seek information to support their existing beliefs. This leads to errors in judgement that may have significant consequences. Financial professionals are no exception, and are often even more prone to this.

A good example is investors, who regularly hang onto loss-making assets for too long and dispose of profit-making assets too quickly. As a result, investors are almost twice as likely on average to sell a winning stock than a losing one. This leads to significant losses and missed opportunities for profits. In addition to this, it turns out that just trying to get more information on how to decide has no impact on the accuracy of the outcome. Why is this? We can explain, and show you how to avoid falling into these and other psychological traps.
Training Behavioural Finance

Module content

We provide you with insights into Behavioural Finance by demonstrating the connection between investing and applied psychology. We can reveal common pitfalls and biases so you can avoid errors in financial decision-making.

* Introduction to Behavioural Science
* The neuroscience behind financial behaviour
* Heuristics, biases and loss aversion: what are the psychological factors that drive our behaviour?
* How to approach risk when you want to invest
* The psychology of incentives
* The drivers of market bubbles and how to take a more rational approach
* We are hard-wired for the short term: how can you deal with delayed gratification?
* A behavioural analysis of fund management: what are the pitfalls?
* Corporate Governance and its effects on Behavioural Finance
* Analysing earnings, dividends and investing from a Behavioural Science perspective
* Psychological perspectives on Merger & Acquisitions
* Avoiding common pitfalls when investing
* Ideal team composition in finance
* Behavioural Finance during a recession: what to do?

Cost: € 990 per person for this one-day training course

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