SnapVest is a mobile app that makes investing easy and social by allowing users to make directional stock picks from their phone. The app is designed based on principles of behavioral finance and psychology, including concepts like mental accounting, herd behavior, overreaction, illusion of control, and overconfidence, in order to trigger biases that may influence investing behavior. Users can view what other investors are doing and quickly make up/down picks on stocks within a countdown window.

2. SnapVest makes financial investments easy,
casual & social by allowing users to invest on
stock direction, directly from their mobile
phone.

3. This is a product overview of SnapVest.
We shaped our vision & product based on human psychology; we’ve
taken into consideration:
Overview
‣ Behavioral Finance.
‣ Techniques frequently used in casinos and casino games.
‣ User testing we’ve conducted.

4. Mental Accounting is
when people separate
their money into
separate accounts
based on a variety of
subjective criteria, like
the source of the
money or intent for
each account.
Mental Accounting
What is

5. Mental Accounting is
when people separate
their money into
separate accounts
based on a variety of
subjective criteria, like
the source of the
money or intent for
each account.
You have subjected yourself to a weekly lunch budget and are going to purchase a
$6 sandwich for lunch. As you are waiting in line, one of the following things occurs:
1) You find that you have a hole in your pocket and have lost $6; or 2) You buy the
sandwich, but as you plan to take a bite, you stumble and your delicious sandwich
ends up on the floor. In either case would you buy another sandwich?
Logically speaking, your answer in both scenarios should be the same; however,
because of the mental accounting bias, most people in the first scenario wouldn't
consider the lost money to be part of their lunch budget because the money had
not yet been spent. Consequently, they'd be more likely to buy another sandwich.
research
Mental Accounting
What is

6. Some investors divide their
investments between a safe and
speculative in order to prevent the
negative returns that speculative
investments may have from affecting
the entire portfolio. The problem with
such a practice is that the net wealth
will be no different than if the
investor had held one larger portfolio.
Mental Accounting
investors

7. Some investors divide their
investments between a safe and
speculative in order to prevent the
negative returns that speculative
investments may have from affecting
the entire portfolio. The problem with
such a practice is that the net wealth
will be no different than if the
investor had held one larger portfolio.
SnapVest is built on Mental Accounting Bias. We’ll communicate with
our investors that we’re their place to experiment on high risk/yield
opportunities. For that reason our delivery method is mobile and
product is simple and easy to use; we want to allow the low spectrum
of investors to invest casually, even on the go.
Mental Accounting
investors

8. Overreaction
Oftentimes,
participants in the
stock market
predictably
overreact to new
information, creating
a larger-than-
appropriate effect
on a security's price.
What is

9. Overreaction
Oftentimes,
participants in the
stock market
predictably
overreact to new
information, creating
a larger-than-
appropriate effect
on a security's price.
In the study "Does the Market Overreact?" researches
examined returns on the NYSE for a three-year period.
They separated the best 35 performing stocks into a
"winners portfolio" and the worst 35 into a "losers
portfolio". Researches then tracked each portfolio's
performance against a representative market index
for 3 years. Surprisingly, it was found that the losers
portfolio consistently beat the market index, while
the winners portfolio consistently underperformed.
The cumulative difference was almost 25% during the
3-year time span.
researchWhat is

10. Overreaction
Oftentimes,
participants in the
stock market
predictably
overreact to new
information, creating
a larger-than-
appropriate effect
on a security's price.
In the study "Does the Market Overreact?" researches
examined returns on the NYSE for a three-year period.
They separated the best 35 performing stocks into a
"winners portfolio" and the worst 35 into a "losers
portfolio". Researches then tracked each portfolio's
performance against a representative market index
for 3 years. Surprisingly, it was found that the losers
portfolio consistently beat the market index, while
the winners portfolio consistently underperformed.
The cumulative difference was almost 25% during the
3-year time span.
researchWhat is
We leverage Overreaction
by choosing investment
opportunities the market is
most likely to overreact to.
By doing so, we could
create high level of
engagement amongst over
reactors and generate high
returns from the
overreaction effect.

11. Gambling games are
designed in such a way that
the gamblers feel as if they
are in control and that
failure to win is accredited
to “near misses“. Personal
choice is an additional
factor contributing to the
illusion of control.
What is
Feeling in Control

12. Gambling games are
designed in such a way that
the gamblers feel as if they
are in control and that
failure to win is accredited
to “near misses“. Personal
choice is an additional
factor contributing to the
illusion of control.
Lotteries allow players to pick their own
numbers, slot machines offer bonus
screens where the player will need to
pick X of Y in order to determine the
amount of money or spins they win.
researchWhat is
Feeling in Control

13. Gambling games are
designed in such a way that
the gamblers feel as if they
are in control and that
failure to win is accredited
to “near misses“. Personal
choice is an additional
factor contributing to the
illusion of control.
Lotteries allow players to pick their own
numbers, slot machines offer bonus
screens where the player will need to
pick X of Y in order to determine the
amount of money or spins they win.
researchWhat is
SnapVest let users feel in
control by letting them
invest on stock direction.
As oppose to hedge funds
or other financial
providers– in SnapVest
Investors are empowered
to make investment
decisions.
Feeling in Control

14. This is SnapVest’s main
page.

15. This is SnapVest’s main
page.
This is the company in
question and recent
happenings.

16. Most casino games are
leveraging the fact
that the brain is
hardwired to like
short-term
gratification (leading
to quick and easy
decisions).

17. Most casino games are
leveraging the fact
that the brain is
hardwired to like
short-term
gratification (leading
to quick and easy
decisions).
To invest, the user
needs to simply decide
whether the stock in
question will go up or
down.

18. Once deciding on stock
direction, another part
of the screen will
appear from beneath.
Then, the investor
could decide on an
investment amount
and approve the trade.
And that’s all it takes.

19. This is a countdown; at
the end of the time
frame, the investment
opportunity will be
closed and investors
couldn’t invest
anymore (that’s when
we execute the trades).
The countdown is
counting backwards to
create a sense of
urgency to invest.

20. What is
Herd Behavior
Herd behavior is the tendency of individuals to mimic the actions (rational or irrational) of a larger group.
There are a couple of explanations for herd behavior. The first is the social pressure of conformity. The second
reason is the common rationale that it's unlikely that such a large group could be wrong. After all, even if you
are convinced that a particular idea or course of action is irrational or incorrect, you might still follow the herd,
believing they know something that you don't. This is especially prevalent in situations in which an individual
has very little experience.

21. To trigger the herd
behavior bias, we put
other investors’
behavior front and
center.

22. To trigger the herd
behavior bias, we put
other investors’
behavior front and
center.
Data we present:
•Distribution of other
investors.
•Average investment
amount per side
(up/down) as an
indication for
confidence.
•Accuracy of past
investment as an
indication of luck &
knowledge.

23. Each trade opportunity
has three slides:
•Opportunity.
•Comments.
•Stock data.

24. Confidence implies
realistically trusting in
one's abilities, while
overconfidence implies
an overly optimistic
assessment of one's
knowledge or control
over a situation.
What is
Overconfidence

25. Confidence implies
realistically trusting in
one's abilities, while
overconfidence implies
an overly optimistic
assessment of one's
knowledge or control
over a situation.
researchWhat is
Overconfidence
A 2006 study entitled "Behaving Badly” found that 74% of the professional fund
managers surveyed believed that they had delivered above-average performance.
Of the remaining 26% surveyed, the majority viewed themselves as average.
Incredibly, almost 100% of the survey group believed that their job performance
was average or better. In terms of investing, overconfidence can be detrimental to
your stock-picking ability. Overconfident investors generally conduct more trades
than their less-confident counterparts, because they tend to believe they are better
than others at choosing the best stocks and best times to enter/exit a position.
Unfortunately, overconfident investors, on average, receive significantly lower
yields than the market.

26. In the gambler's fallacy, an
individual erroneously believes
that the onset of a certain
random event is less likely to
happen following an event or a
series of events. This line of
thinking is incorrect because past
events do not change the
probability that certain events
will occur in the future.
What is
Gambler’s Fallacy

27. In the gambler's fallacy, an
individual erroneously believes
that the onset of a certain
random event is less likely to
happen following an event or a
series of events. This line of
thinking is incorrect because past
events do not change the
probability that certain events
will occur in the future.
What is
Gambler’s Fallacy
investors
Consider a series of 20 coin flips that have all landed with the "heads" side
up. Under the gambler's fallacy, a person might predict that the next coin
flip is more likely to land with the "tails" side up.
Investors can easily fall prey to the gambler's fallacy. For example, some
investors believe that they should liquidate a position after it has gone up in
a series of subsequent trading sessions because they don't believe that the
position is likely to continue going up. Conversely, other investors might
hold on to a stock that has fallen in multiple sessions because they view
further declines as "improbable". Just because a stock has gone up on six
consecutive trading sessions does not mean that it is less likely to go up on
during the next session.

28. This is stock data slide.
We leverage
overconfidence and
Gambler’s Fallacy by
providing investors
with current stock
performance alongside
with recent news
about the company.

29. This is stock data slide.
We leverage
overconfidence and
Gambler’s Fallacy by
providing investors
with current stock
performance alongside
with recent news
about the company.
The more investors
will know, the more
overconfident they
will feel, even though
past performance is
not an indication for
the future.

30. This is comments slide.

31. To leverage the Herd
Behavior Bias a bit
further, we allow
investors to comment
and talk with one
another on each trade.
This is comments slide.

32. People tend to selectively
filter and pay more
attention to information
that supports their
opinions, while ignoring or
rationalizing the rest.
What is
Confirmation Bias

33. People tend to selectively
filter and pay more
attention to information
that supports their
opinions, while ignoring or
rationalizing the rest.
An investor that hears about a hot stock
from an unverified source and is
intrigued by the potential returns. That
investor might choose to research the
stock in order to "prove" its touted
potential is real.
researchWhat is
Confirmation Bias

34. People tend to selectively
filter and pay more
attention to information
that supports their
opinions, while ignoring or
rationalizing the rest.
An investor that hears about a hot stock
from an unverified source and is
intrigued by the potential returns. That
investor might choose to research the
stock in order to "prove" its touted
potential is real.
researchWhat is
Each investor could find
supporting data to his
intuition amongst the
different data points on
SnapVest: from stock
performance and crowd
behavior to comments.
Confirmation Bias

35. Those who study human behavior have repeatedly
found that the fear of missing an opportunity for
profits is a more enduring motivator than the fear of
losing one's life savings. At its fundamental level, this
fear of being left out or failing when your friends,
relatives and neighbors seem to be making a killing,
drives the overwhelming power of the crowd.
Missing an opportunity
What is

36. Those who study human behavior have repeatedly
found that the fear of missing an opportunity for
profits is a more enduring motivator than the fear of
losing one's life savings. At its fundamental level, this
fear of being left out or failing when your friends,
relatives and neighbors seem to be making a killing,
drives the overwhelming power of the crowd.
investors
Casinos frequently and artificially play the sounds of a
winning slot machine so people will think others are
winning in high frequency.
Missing an opportunity
What is

37. This is SnapVest’s
leaderboard. Here,
investors can see their
top performing peers,
by either return or
accuracy rate

38. This is SnapVest’s
leaderboard. Here,
investors can see their
top performing peers,
by either return or
accuracy rate
This is our way to give
the feeling of: “by not
investing I’m practically
losing money”.
It’s like sitting next to a
slot machine when the
guy next to you is
constantly winning.

39. This is “my money”
page, in which the
investor can track his
performance according
to several metrics.

40. This is “my money”
page, in which the
investor can track his
performance according
to several metrics.
Investors can also
prioritize the investment
opportunities in their feed.
The more knowledgeable
the investor is regarding
the sector, the more likely
he is to invest.

41. This is “Trades” page.
Here the investor can
track each of his trades
and how well they
performed.

42. This is “Trades” page.
Here the investor can
track each of his trades
and how well they
performed.
Investors can also filter
the list by profits/loses
and sort the results by
date, return and cash
earned/lost.