Die Anwendbarkeit der Behavioral Finance im Devisenmarkt

Thomas Heidorn and Tindaro Siragusano

No 52, Frankfurt School - Working Paper Series from Frankfurt School of Finance and Management

Abstract: Behavioral finance theory is used for the foreign exchange market to show, that the profit of a typical trader is mainly due to the higher number of correct positions. Using behavioral finance the amount of loss trades is larger than 60%, however the individual gains are larger than the losses leading to an overall profit. Using this approach we show, that behavioral finance rules can be quantified and a trading outperformance is possible just using 24h spot rates and 3 day volatilities.

Keywords: behavioral finance; technical trading; foreign exchange market; FX; anchoring; regret avoidance (search for similar items in EconPapers)
JEL-codes: G12 G14 (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (66)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:fsfmwp:52

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