This week’s topics
Behavioural Finance and Trader Psychology
- Heuristics and cognitive biases (anchoring, confirmation, overconfidence)
- Emotional determinants: loss aversion, fear, greed, and herd behaviour
- Market anomalies and speculative bubbles
- Developing emotional discipline, trading journals, and execution psychology
- ACCA AFM | Behavioural Finance | Lecture 5
- Anomalies and News
- The Psychology of Money - Professor Glenn D Wilson
- Economics 119 - Lecture 23: Heuristics and Biases
- Economics 119 - Lecture 18: Bayes Rule Anomalies
What you will be able to do
- 2.1 Examine how trading performance is affected by human psychology.
Activity
Start with this week’s 5 videos, then: Seminar, guided reading and a short written task: examine how trading performance is affected by human psychology.
Study materials
Videos
- ACCA AFM | Behavioural Finance | Lecture 5 · YouTube · Tutor Star · 34 min · for registered students
- Anomalies and News · YouTube · Columbia Business School · 24 min · for registered students
- The Psychology of Money - Professor Glenn D Wilson · YouTube · Gresham College · 54 min · for registered students
- Herd Behaviour and Keeping up with the Joneses · YouTube · LSE · 75 min · for registered students
- Bubbles, Manias and Market Failures - D'Maris Coffman · YouTube · Gresham College · 48 min · for registered students
- The Greed & Fear Tango: The Markets in April 2025! · YouTube · Aswath Damodaran · 30 min · for registered students
Further resources
- MIT 15.401 Finance Theory I, lecture notes: Efficient Markets · PDF · Other, slides · for registered students
- Noba Psychology module: Judgment and Decision Making · Reading · Noba, textbook chapter · for registered students
Materials marked “for registered students” open in the student portal, which is set up as soon as you receive final acceptance.
