Financial Market Psychology 2600-dz/w3PRFf
Introduction
Factors influencing investor preferences:
(a) status quo effect
(b) preferences over time
(c) emotional states
I. Psychological determinants of decision-making
1.1 Prospect theory
1.2 Financial forecasts and recommendations
1.3 Investing and the investment horizon
1.4 Asset Trading Frequency
1.5 Increased self-confidence
1.6 Disposition effect
1.7 Indices based on the psychology of markets and investors
II. Risk aversion
2.1 Utility function
2.2 VIX Index
2.3 Fama Model
2.4 MacBeth's model
III. The psychology of herd behavior
3.1 Conformism
3.2 Diffusion of responsibility
3.3 The collective unconscious
3.4 Deindividuation
3.5 Social facilitation
IV. Cognitive tendencies of investors
4.1 The illusion of control
4.2 Excessive optimism
4.3 confirmation trap
4.4 The backwards thinking effect
4.5 Cognitive dissonance
4.6 Fundamental attribution error
4.7 Positive and negative freshness effect
4.8 Anchoring heuristics
4.9 availability heuristics
4.10 affect heuristics
V Motivational tendencies of investors
5.1 Mental Accounting
5.2 The sunk cost effect
5.3 Hedonic framing
5.4 Disposition effect
5.5 Possession Effect
VI. Attributes of success in investing
6.1 Method
6.2 Discipline
6.3 Experience
6.4 Motivation
Type of course
Mode
Course coordinators
Learning outcomes
The student knows and understands:
K_W01 - Knows and understands in-depth research methodology and terminology in the discipline of economics and finance, in particular in the area of financial markets
K_W03 - Knows and understands in-depth the principles, procedures and practices regarding the functioning of financial markets and investment principles.
K_W05 - Knows and understands complex technological, social, political, legal, economic and ecological processes and phenomena, the principles of functioning of financial markets and their impact on financial decisions.
Student is able to:
K_U01 - Is able to use the theory of the discipline of economics and finance and complementary sciences (legal sciences) to recognize, diagnose and solve problems related to financial decisions, using the appropriate selection of sources and adapting existing or developing new methods
K_U02 - Is able to correctly interpret complex social, political, legal, economic and ecological processes and phenomena and their impact on financial decisions using the appropriate selection of sources.
The student is ready:
K_K01 - Is ready to assess and critically approach complex situations and phenomena related to investing and capital allocation.
Assessment criteria
Instead of the traditional way of checking the Student's knowledge, the lecturer expects an active approach to the subject throughout the semester and the ability to take a critical look at diagnosing and anticipating market trends. The overall assessment will consist of the following elements:
1. term paper,
2. activity on dedicated forums in social media.
Bibliography
Basic literature
Kostolany A. Psychologia giełdy: słynne wykłady przy kawiarnianym stoliku, Księgarnia maklerska 2021.
Pring M.J Psychologia inwestowania: klasyczne strategie osiągania sukcesów na giełdzie, Dom Wydawniczy ABC 1999
II. Supporting literaturę
Fridson M. S. Złudzenia inwestora WIG Press, 2000.
Komar Z. Sztuka spekulacji Wydawnictwo Pret S.A 1995
Koppel R, Abell H. Wewnętrzna gra : kształtowanie psychiki gracza giełdowego WIG Press, 1997
Zielonka P. Behawioralne aspekty inwestowania na rynku papierów wartościowych CeDeWu Sp. z o.o., 2006
Zielonka P. Giełda i psychologia, CeDeWu Sp. z o.o.2011
Notes
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Term 2025Z:
None |
Additional information
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