On holding losers and selling winners: our emotional brains and the disposition effects

4 February, 201829 April, 2019 Daniel Richards

I am delighted to introduce a guest blog by Dr Daniel Richards about some research we collaborated on. The disposition effect describes a bias that causes investors to be more willing to sell investments that have risen in in value than those that have fallen in value. Our research shows that investors who rely less on emotions and intuition and investors who manage their emotions more effectively are less likely to show this investment bias. Continue reading On holding losers and selling winners: our emotional brains and the disposition effects

Consumer Finance, Impulsive buyingLeave a comment

Advertising and impulsive spending

11 February, 201729 April, 2019 Mark Fenton-O'Creevy

In the video in this blog I discuss with the MoneyMail’s Rachel Rickard Straus the psychology of advertising, impulsive spending and self control. Continue reading Advertising and impulsive spending

Fund management, InvestmentLeave a comment

Different Minds: why we need human capabilities and machine intelligence*

5 September, 201629 April, 2019 Mark Fenton-O'Creevy

“There have been great societies that did not use the wheel, but there have been no societies that did not tell stories.” —Ursula K. LeGuin To listen to some scholars of decision-making, it is a great wonder that humans have … Continue reading Different Minds: why we need human capabilities and machine intelligence*

Consumer Finance, Uncategorized3 Comments

Scams, Victims, and Scammers

25 February, 201629 April, 2019 Mark Fenton-O'Creevy

Successful fraud requires both a set of skills and a willingness to deliberately target and deceive others. The most successful fraudsters have a capacity to look us in the eye, to engage our trust and then betray it without a … Continue reading Scams, Victims, and Scammers

Consumer Finance, UncategorizedLeave a comment

Money and relationships

24 December, 201529 April, 2019 Mark Fenton-O'Creevy

“Money doesn’t talk it swears” Bob Dylan Differences in attitudes to money are a major cause of disagreements in relationships. Research shows that financial disagreements are one of the more frequent and less easily resolved causes of relationship conflict. One study found that … Continue reading Money and relationships

Investment, TradersLeave a comment

‘The heart has its reasons’: emotions and cognition in the world of finance

24 February, 201529 April, 2019 Mark Fenton-O'Creevy

Let’s call him James, a trader in a City investment bank; young, smartly dressed, confident, and a little impatient. He sat across from me in the interview:

“It’s really important to stay cool. For myself, I can say that I really don’t have much emotion while I trade”.

Half an hour later, as he relaxed a little, the façade had started to crack:

“Actually the pressure can be horrendous, a trade goes badly wrong, you are staring into black hole, frozen, knowing you should get out but just hoping the market will turn . . I rushed off the desk and threw up in the toilet – I was terrified”.

Continue reading “‘The heart has its reasons’: emotions and cognition in the world of finance”

Fund management, Investment, Traders2 Comments

Interview on Share Radio

7 February, 201519 March, 2016 Mark Fenton-O'Creevy

Here is a link to my interview with Michael Considine of Share Radio. Where I talk about my research on emotions and investment and the work of the True Potential Centre for the Public Understanding of Finance. Continue reading Interview on Share Radio

Fund management, Investment, TradersLeave a comment

On fund-managers, rats and hermit crabs: reversion to familiar habits under stress

3 August, 201429 April, 2019 Mark Fenton-O'Creevy

Hermit crabs rely on acquiring discarded shells for their protection and are constantly on the look-out for better shells. However, faced with environmental stress they prefer to stick with their old shell, however unsuitable, than risk moving to a new … Continue reading On fund-managers, rats and hermit crabs: reversion to familiar habits under stress

Consumer Finance, Traders2 Comments

The Emotional Business of Finance

11 December, 201324 December, 2015 Mark Fenton-O'Creevy

The video below is a presentation I made at the launch of the Open University Business School‘s Centre for the Public Understanding of Finance (PuFin). You can find a copy of the slides here. Martin Lewis also made a very … Continue reading The Emotional Business of Finance

Consumer Finance, Investment1 Comment

Investment, Emotions and the Temple at Delphi*

28 October, 201329 April, 2019 Mark Fenton-O'Creevy

Can understanding the psychology of investment behaviour help you outperform the market? Probably not, but it can certainly help reduce the probability that you will under-perform the market. This matters, because the majority of private investors under-perform. One compelling piece … Continue reading Investment, Emotions and the Temple at Delphi*

Consumer FinanceLeave a comment

Shopping, impulsiveness and weapons of massive consumption

15 March, 20137 July, 2015 Mark Fenton-O'Creevy

And I am a weapon of massive consumption And it’s not my fault it’s how I’m programmed to function Lily Allen, The Fear, 2009 The financial crisis that hit us in 2008 has been analysed in great detail by economists and journalists. … Continue reading Shopping, impulsiveness and weapons of massive consumption

Consumer Finance, Traders10 Comments

On the false contrast between rationality and emotion

28 February, 201327 April, 2019 Mark Fenton-O'Creevy

It is common to contrast emotions with rationality (usually in tandem with proclaiming the superiority of reason over emotion). Take for example this post on the changingminds blog. It is also the claim at the heart of Ayn Rand’s morally … Continue reading On the false contrast between rationality and emotion

Emotional Finance

Research on the role of emotions in financial decision making

Category: Consumer Finance

On holding losers and selling winners: our emotional brains and the disposition effects

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Advertising and impulsive spending

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Different Minds: why we need human capabilities and machine intelligence*

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Scams, Victims, and Scammers

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Money and relationships

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‘The heart has its reasons’: emotions and cognition in the world of finance

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Interview on Share Radio

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On fund-managers, rats and hermit crabs: reversion to familiar habits under stress

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The Emotional Business of Finance

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Investment, Emotions and the Temple at Delphi*

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Shopping, impulsiveness and weapons of massive consumption

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On the false contrast between rationality and emotion

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