Curriculum Behavioural Finance
Behavioural Finance
Why real investors and markets don't always behave as textbooks predict - the disposition effect, overtrading, home bias, bubbles, momentum, meme stocks and how to build habits that protect your money.
- What Behavioural Finance Studies How behavioural finance combines psychology and finance to explain investor mistakes and market puzzles that traditional theory struggles with. 📄 Read-aloud
- The Disposition Effect: Selling Winners, Holding Losers Why investors tend to sell shares that have risen too early and hold on to losers too long, and how this habit costs money. 📄 Read-aloud
- Trading Too Much Why frequent trading tends to reduce returns, what a famous study of brokerage accounts found, and how overconfidence fuels the habit. 📄 Read-aloud
- Home Bias: Investing Too Close to Home Why investors everywhere put most of their money in their own country's stocks, and in their own employer, and what this means for risk. 📄 Read-aloud
- Chasing Past Returns Why investors pile into funds and assets after they have done well, why past performance is a poor guide, and how recency bias shapes investment flows. 📄 Read-aloud
- Limits to Arbitrage: Why Mispricing Can Last Why smart investors cannot always correct wrong prices, including noise trader risk, costs and the danger that markets stay irrational longer than you can stay solvent. 📄 Read-aloud
- Behavioural Finance: Checkpoint 1 Quick checkpoint - five questions on behavioural finance, the disposition effect, overtrading, home bias and chasing returns. 5 questions
- The Psychology of Bubbles How excitement, stories and social contagion inflate asset bubbles, what Robert Shiller's work shows, and warning signs investors can watch for. 📄 Read-aloud
- Momentum and Reversal Two puzzling patterns in stock returns - recent winners keep winning for a while, while long-term losers tend to rebound - and their behavioural explanations. 📄 Read-aloud
- The Behaviour Gap Why the returns investors actually earn are often lower than the returns of the funds they own, and how timing decisions create this gap. 📄 Read-aloud
- Meme Stocks and Gamified Trading How trading apps with game-like features and online communities fuelled the 2021 meme stock frenzy, and what research says about gamification and investor behaviour. 📄 Read-aloud
- Lottery Stocks: Why Investors Love Long Shots Why investors overpay for cheap, speculative stocks with a small chance of huge gains, and what research finds about their returns. 📄 Read-aloud
- Building a Behaviour-Proof Investment Plan Practical ways to protect your investments from your own biases, using automation, written rules and simple portfolios, plus a recap of the module. 📄 Read-aloud