How Behavioural Economics Can Improve Trading

You can have two traders with the same ability to analyze information, the same data given and the same trade to make. However, one will make the trade and win, the other one will pass on it. What is the difference? The difference is in their mentality, in their perception of taking risks, their perception of value of a long-term gain and a short-term loss. Mathematics, economics, finance have many rules, guidelines and numbers. Although not easy, these areas are simple when compared to a behaviour of a human being.

There is a misconception that rational human beings know what is better for them, their actions are guided by intellect and foresight, not desire and temptation. Traditional economics use this model of a reasonable person to predict human behaviour and to tailor options on the market for such. However, people are not reasonable, they are creatures of habit and of irrational decision-making process. There are those that are prone to risk taking and those who are prone to risk aversion, whether the risk will be beneficial or not is decided on subjective grounds. Traditional economics fail to provide answers to the pressing questions of human nature. That is how the need for behavioural economics sprang up.

What is behavioural economics?

Behavioural economics is an encompassing term for various approaches that try to understand and explain behaviour of consumers by utilizing a combination of psychological insights into economics in a systematic manner. Behavioural economics take into account the impact of the typical mental shortcuts, systematic habits and framing effects that influence consumer choice and behaviour.

Application of behavioural economics in the finance and in blockchain trading could be very beneficial for traders. There is a need for an inside portal where the results of the trades are analyzed by professionals: the winning strategies are refined, and the losing strikes explained. A platform that can give traders guidance and sharpen their trading techniques whilst making sure that their personal traits, such as risk aversion or risk inclination, do not stand in the way of their successful trades execution.

Such platforms will enhance the overall experience of any exchange. The market is tough and the only ones that survive need to be tougher than the market itself. Professional advisors with expertise in trading, finance, economy and psychology would make them more efficient in that harsh market.GameChanger is a platform that identifies weaknesses and strong points of traders and relies on the insights from a personal psychology. It fosters positive change in the trading techniques and results in maximization of the returns. The platform is a perfect fit for brokers who want to see their traders succeed and become the toughest ones on the market.

Everyone wants to be a lion, not everyone gets a chance to become one. The platform offers many professional and retail tools for a better risk management, such as a live discipline tracker, customization of a retail plan and a real-time portal for traders support that encourages them and diverts them from a wrong path. The platform will also help brokers to get an insight into the trading techniques of their traders and will advise them on the best support plan.

A platform that utilizes behavioural economics and employs advisers that are experts in finance, trading and in personal psychology will teach traders resilience needed to beat the enemy outside and within.

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