Errors occur systematically

Therefore, they are foreseeable. As opposed to classical economics, Behavioral Finance centres on the behaviour of market participants.
The discipline is a critical observation of the way investors select and process information before a decision and of how that decision ultimately guides subsequent research. The discovery of anomalies reveals that there are limits to human processing capacity.

Moreover, when errors do appear, Behavioral Finance demonstrates that most people make the same mistakes at the same time. It means that behaviour is systematic and, therefore, forecastable.



Avoid the markets' psychological pitfalls

Mastering the lessons of Behavioral Finance means not only learning to avoid the psychological traps and making better decisions, but also coming closer to understanding how markets really work.
Even more importantly, one can know what investors will do next.



The path to optimal results

Decision making under time pressure, against a background of contradictory recommendations, can result in missed opportunities and investment underperformance.
The problem faced by the majority of decision-makers is that losses will typically weigh much heavier in their perceptions than gains of equal monetary value. The consequence of this asymmetry is that profits will often be realised too early and losses allowed to run too far.
Computer-driven trading models, conceived and developed by Cognitrend, can eliminate the negative effects of this behavioural imbalance.