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These are the slides from the 2nd session of the Stanford University class, CS 007 "Personal Finance for Engineers". This seminar covers the topic of Behavioral Finance.
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These are the slides from the 2nd session of the Stanford University class, CS 007 "Personal Finance for Engineers". This seminar covers the topic of Behavioral Finance.
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Stanford CS 007-2 (2019): Personal Finance for Engineers / Behavioral FinanceAdam Nash
These are the slides from the 2nd session of the Stanford University class, CS 007 "Personal Finance for Engineers". This seminar covers the topic of Behavioral Finance.
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Stanford CS 007-2 (2018): Personal Finance for Engineers / CompensationAdam Nash
These are the slides from the 2nd session of the Stanford University class, CS 007 "Personal Finance for Engineers". This seminar covers the topic of Behavioral Finance.
Stanford CS 007-02: Personal Finance for Engineers / Predictably IrrationalAdam Nash
These are the slides from the 2nd session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on October 3, 2017. This seminar covers behavioral finance & financial decision making.
Basics of behavioral economics, biases and methods of decision architectures. This presentation is the short version and does not include the videos and images of the experiments and real life examples.
Personal Finance: Introduction to Behavioral Finance by @PhroogalJason Vitug
Behavioral finance is a subcategory of finance that seeks to explain the rationality or irrationality of financial decision-making. It seeks to combine behavioral and cognitive psychology theory with finance to provide explanations for why people make irrational decisions.
Week One material for Wealth Management course.
The information contained in this presentation is for illustrative and informational purposes only and should not be considered investment advice.
As an Investment Advisor, you will have to play an important role in enabling your clients to reach their financial goals without the emotions of fear or greed playing havoc. It is essential to understand Behavioural Finance, especially Heuristics and Biases that creep into financial decision making.
How to Lock in Profits on Every Trade - Presented by Dr. Richard M. Smith TradeStops
www.tradestops.com
How to Lock in Profits on Every Trade - Presented by Dr. Richard M. Smith
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Learn the proven mathematical formula to make bigger and faster gains on every trade you make.
Learn what trailing stops are and how they work.
Learn how to make a plan for tracking your stocks to sell at just the right time.
View case studies of this process in action and the amazing results.
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Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
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How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
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In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
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Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
4. YOU ARE NOT
RATIONAL
ANCHORING MENTAL ACCOUNTING CONFIRMATION &
HINDSIGHT BIAS
GAMBLER’S FALLACY
HERD BEHAVIOR OVERCONFIDENCE OVERREACTION &
AVAILABILITY BIAS
LOSS AVERSION
5. WHY BEHAVIORAL ECONOMICS?
• A number of economic frameworks
assume that humans evaluate
financial decisions consistently &
rationally
• Daniel Kahneman & Amos Tversky
(1960s)
• 2002 Nobel Memorial Prize in
Economic Sciences
• Prospect Theory
6. THREE THEMES IN BEHAVIORAL ECONOMICS
• Heuristics
Humans make a vast majority of
their decisions using mental
shortcuts or rules of thumb.
• Framing
Humans use anecdotes &
stereotypes to understand &
respond to events
• Market Inefficiencies
Mis-pricing or non-rational decision
making
7. ANCHORING
• People estimate answers to new &
novel problems with a bias towards
reference points
• Tversky & Kahneman (1974)
(quick multiplication)
• Dan Ariely
(social security numbers & prices)
• Common examples:
• Price you bought a stock at
• High point for a stock
8. MENTAL ACCOUNTING
• Money is fungible, but people put it
into separate “mental accounts”
• Also known as “bucketing”
• Example: Lost Movie Tickets
• Example: “Found Money”
• Real world problems:
Vacation Fund & Credit Card Debt
9. CONFIRMATION & HINDSIGHT BIAS
• Very different biases, but often conflated
with each other.
• Confirmation Bias
We selectively seek information that
supports pre-existing theories, and we
ignore / dispute information that
challenges or disproves them.
• Hindsight Bias
We overestimate our ability to predict the
future based on the “obviousness” of the
past.
• Combination of the two is particularly bad.
10. GAMBLER’S FALLACY
• We see patterns in independent,
random chains of events.
• We believe that, based on a series of
previous events, an outcome is more
likely than odds actually suggest.
• Example: Dinner Party & Coin Flips
• Real odds might be 51/49, but we tend
to jump to 80/20.
• Likely cause: the rarity of “independent
events” in day-to-day experience.
11. HERD BEHAVIOR
• We have a tendency to mimic the actions of
the larger group
• Example: Building Psych Experiment
• Example: Empty Supermarket
• Crowd psychology may be a contributor to
bubbles.
• Bucking the crowd creates stress & fatigue.
It gets harder, not easier.
• Easier to be “wrong with everyone” than
“right and alone”
• No gets fired for buying IBM?
12. OVERCONFIDENCE
• In “Behaving Badly” (2016), 74% of
investment managers believed that
they deliver above-average
performance.
• Dunning-Kruger Effect. The more
poorly you perform, the more you
over-estimate your performance.
• Capability in one domain can lead to
overconfidence in others.
• Humility is a virtue.
13. RECENCY & AVAILABILITY BIAS
• Recency Bias
We overreact to recent events
• Example: Celebrity Illness
• Availability Bias
We assume that the data we have been
provided is representative of the entire data
set.
• The combination is particularly bad.
• Studies show checking stock prices daily leads
to more trading & worse results on average.
• Worse for engineers, because we are immersed
in “game changers” & “it is different this time”
14. YOU HAVE $1,000 AND YOU MUST PICK
ONE OF THE FOLLOWING GAMES
You have a 100% chance of gaining $500.
B
You have a 50% chance of gaining $1,000, and
a 50% chance of gaining $0.
A
OR
15. NOW, YOU HAVE $2,000 AND YOU MUST
PICK ONE OF THE FOLLOWING GAMES
B
A
OR
You have a 50% chance of losing $1,000, and
a 50% chance of losing $0.
You have a 100% chance of losing $500.
16. LOSS AVERSION (PROSPECT THEORY)
• We hate losses more than we love winning
• Average loss aversion across multiple
studies is between 2:1 and 3:1
• Affects our views on a wide range of
situations, including career decisions,
dating, purchasing, investing and taxes.
• We even hate being responsible for
decisions that could result in a loss
• Example: “Sunk Cost” mistakes with
investments
• Currently under debate!*
* https://blogs.scientificamerican.com/observations/why-the-most-important-idea-in-behavioral-decision-making-is-a-fallacy/?amp
18. IT’S OK TO NOT BE RATIONAL
• As Dan Ariely beautifully put it, the
key is that humans are predictably
irrational
• Know your own flaws, and you can set
up systems to help account for them
• Self awareness is key
(yes, my Mom is a psychologist)