Financial psychology

Science that seeks to apply behavioral patterns discovered within psychology to events in the financial markets. A main focus is Behavioural Finance (also in German; less frequently translated as Qualitative Finanzmarktanalyse). The aim is to explore the (market) psychological influences on investors’ decisions and thus on price developments. – Just like financial mathematical formulas, financial psychology offers an independent explanatory pattern; however, neither can explain the processes on the financial market in their entirety. In addition, most authors of financial psychology often use ambiguous terms, which are fuzzy both in content and in scope. – See Animal Spirits, Astro-forecasting, Valuability, Chremaphobia, Appraisal, Contrary, Memorability, Europhobia, Exotikomania, Feminization, Fibonacci Sequence, Financial Engineering, Financial Market Analysis, Progress-Return Number, Fear Thesis, Gambling Effect, Herd Behavior, Hindsight, International Bank Account Number, Myopia, male domain, Modigliani-Miller theorem, Imitation, informal, Packing effect, Price perception, Sine curve fetishism, Sell-in-May effect, Gambling doctrine, System conflict, financial market, Loss trap, Transmission effect, psychological, Conspiracy theories, Perception distortions, Fortune telling money.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/

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