Behavioral Finance

	Definition of 'Behavioral Finance' A field of finance that proposes psychology-based theories to explain stock market anomalies. Within behavioral finance, it is assumed that the information structure and the characteristics of market participants systematically influence individuals' investment decisions as well as market outcomes.
	Investopedia explains 'Behavioral Finance' There have been many studies that have documented long-term historical phenomena in securities markets that contradict the efficient market hypothesis and cannot be captured plausibly in models based on perfect investor rationality. Behavioral finance attempts to fill the void.
	Related Video for 'Behavioral Finance'

Related Definitions

Behavioral Finance

Learn the science behind irrational decision making and how you can avoid it.
This Is Your Brain On Stocks

Find out how the human mind can hurt investors' portfolios.
4 Psychological Traps That Are Killing Your Portfolio

Sometimes your largest financial hurdle is our head. Learn about the common mind-traps that trip up investors.
Master Your Trading Mindtraps

Learn to overcome one of the biggest trading hurdles.
How To Avoid Emotional Investing

Most investors buy high and sell low, but you can avoid this trap by using some simple strategies.
An Introduction To Behavioral Finance

Curious about how emotions and biases affect the market? Find some useful insight here.
How To Read The Market's Psychological State

Discover what on-balance volume, accumulation/distribution and open interest can tell you about the market mood.
How The Power Of The Masses Drives The Market

Market psychology is an undeniably powerful force. Find out what you can do about it.
Should You Invest Your Entire Portfolio In Stocks?

It is true that stocks outperform bonds and cash in the long run, but that statistic doesn't tell the whole story.
The Uses And Limits Of Volatility

Check out how the assumptions of theoretical risk models compare to actual market performance.

Why Americans Think Bush Is To Blame For The Economy	The Complete Guide To Calculating Your Net Worth		Top Investment Trends For 2013	5 Viable Career Options In 2013
	How Do Internet Browsers Make Money?	Commodities Of The Future	Trending Stocks And The January Effect