Brain Activity of the Investor's Stock Market Financial Decision

João Paulo Vieito, Armando Freitas da Rocha and Fabio Theoto Rocha

Journal of Behavioral Finance, 2015, vol. 16, issue 3, 220-230

Abstract: Using electroencephalogram technologies (EEG) to map the brain, this investigation is among the first to analyze if the same brain circuits are used when making buying, selling, or holding stock decisions and if different circuits are used when market conditions change such as in a growing market or a high volatility market. Two groups of 20 volunteers were used. One group initiated the trading process in a market with steadily increasing prices and then moved to a high volatility market, and the second group started trading in a high volatility market and then in a growing market.Results are quite innovative in the area of finance: brain mapping associated with such decisions differs between these two groups, and also when buying, selling, or holding decisions were made. These results clearly demonstrate that people may use different reasoning strategies to make financial decisions depending on their trading experience.

Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1080/15427560.2015.1064931 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:hbhfxx:v:16:y:2015:i:3:p:220-230

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/hbhf20

DOI: 10.1080/15427560.2015.1064931

Access Statistics for this article

Journal of Behavioral Finance is currently edited by Brian Bruce

More articles in Journal of Behavioral Finance from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().