1. Rossohin V.V. Rylkin A.Y. Vlasova J.A.

2. Analysing the actions of traders made under the influence of psychological biases, emotions and other main factors and planning the way to avoid these problems Decision-making psychology on financial markets

3. Investmen t problems Psychologic al biases Emotions Simplificatio n Mood Decision-making psychology on financial markets

4. Psychological biases 1. Overconfidence “Don’t confuse brains with a bull market!” “Don’t confuse brains with a bull market!” Figure 1. Dow Jones Industrial Average Decision-making psychology on financial markets

5. 2. Psychological biases Decision-making psychology on financial markets

6. Psychological biases “Information can mislead people” Figure 2: Gazprom (GSPBEX) Decision-making psychology on financial markets

7. Psychological biases Attachment bias Status quo bias Endowment effect 3. Decision-making psychology on financial markets

8. Psychological biases Attachment bias Figure 3. The INTURAL corporation Decision-making psychology on financial markets

9. One important reason that learning from such mistakes is difficult The brain remembers actions better than the reasons for those actions. Decision-making psychology on financial markets

10. Emotions Fear Greed HopePride Regret Embarrassment Decision-making psychology on financial markets

11. Figure 4. EESR Emotions Seeking pride Decision-making psychology on financial markets

12. Figure 5. GMKNorNik Emotions Avoiding regret Decision-making psychology on financial markets

13. How to avoid problems? Making sell decisions before they are emotionally tied to the position “You have to love to take losses and hate to take gains” Keeping a reminder of the avoiding regret problem If an investor suffers huge losses, he tries to… avoid taking risk entirely by not owning any stocks - FEAR take on more risk in order to recoup the loss - GREED Main problems Seeking prideAvoiding regret Emotions Decision-making psychology on financial markets

14. Simplification The bias of representativeness Mental accounting Decision-making psychology on financial markets

15. Mood and optimism 1. Bad mood, pessimism usually critical and detailed analysis 2. Optimism Figure 6. RTSIND Decision-making psychology on financial markets

16. The main qualities of a successful trader Decision-making psychology on financial markets Quickness of reaction Discipline Experience Concentration Steadiness Readiness to risk Intuition The ability to work in a team The ability to process data Learning capability Communication skills Integrity Independence Analytical thinking Aggression Optimism Mathematical abilities Curiosity Managerial abilities Computer skills Social skills Importance

17. Conclusion system trade In our point of view, system trade is one of the best decisions in this situation. This system could exclude emotional problems, of course, if a trader has enough discipline to follow the system. Decision-making psychology on financial markets