'Neuroeconomics: Before you beat the market' is a high-school research project on how human behavior shapes investment decisions. When it comes to investing, we tend to focus on techniques and strategies. But as Benjamin Graham once said, “The investor’s chief problem—and even his worst enemy—is likely to be himself.” This project asks whether the mental shortcuts that steer our decisions cluster into recognisable profiles, and whether those profiles can be identified with a short self-report instrument. Meet IDNA-Investor DNA Assessment.
Read the full research paper (PDF) →Homo economicus or "economic man"–first defined by philosopher John Stuart Mill in 1836–is a theoretical model in economics that represents an idealized human being who behaves rationally and makes decisions solely based on self-interest, without the influence of emotions or irrational impulses. But are we, really, these rational creatures? My research argues the opposite: no matter how much investing knowledge you possess, if you invest monthly into ETF's without acting out on your emotions and touching your assets, your investments will grow long-term, inconsequently of the market's daily fluctuations.
This project anayzes seven behavioral biases based on what I call the 'Seven deadly sins' from Morgan Housel's 'Psychology of Money': Greed, Envy, Ego, Overconfidence, Fear, Impatience and Narrative Fallacy. By analysing one's own biases and thus 'deadly sins', one can without a doubt improve their investing behavior and thus their long-term returns.
The aim of this project is to reinforse this belief: the psychology behind one's decision prevails upon the knowledge of strategies and investment analyses.
Before the statements you are asked your age, sex, country, and how much investing experience you have. These make it possible to look at whether bias profiles differ across groups, so all of them, along with your consent, are required to take the assessment.
No name, email address or IP address is stored. Answers cannot be traced back to you, which also means a submitted response cannot be withdrawn afterwards.