The New Discipline of Behavioral Finance
Author: Hank Pruden
Running Time: 90 minutes
Workbook Length: 32 pages
Digital Download
Description
The New Discipline of Behavioral Finance Provides Fresh Insights for System Building and Technical Analysis….
Successful market technicians have long recognized the psychological and sociological components of market behavior and that traders’ actions are influenced by their emotions and by cognitive errors. Up until very recently, the majority of the financial world scoffed at the idea of incorporating human frailties into financial analysis, but now a whole new field of study has arisen — behavioral finance — that believes these human flaws are consistent, measurable, and predictable. Hank describes the general paradigm shift that is occurring in the world of finance and shows how technical market analysis can systematically utilize the human motivation that lies beneath all the numbers.
In this presentation, Hank outlines the evolution of behavioral science and shows its close parallels with technical analysis, specifically in the study of herd instinct and mass psychology. Behavioral scientists examine finance from a different orientation than most technicians. Behavioral science is a theoretical discipline that attempts to draw generalities about behavior rather than make specific predictions about an individual’s actions. Hank shows you how these new perceptions can add to your own understanding of the markets. Building upon the concepts of mass behavior, Hank also explains why successful analysis examines and quantifies the parameters of price, time, and volume into a complete and comprehensive system.
After demonstrating the mass behavior framework, Hank takes you through the steps for developing and testing your own technical trading systems. He explains how the different types of market data interact, why each type of market data should be analyzed in depth, and how to select indicators that add up to more meaning. Hank teaches a new, effective and realistic conceptual framework from within which you can develop your own profitable and satisfying trading system.
About The Author
Hank Pruden
Hank Pruden is a professor in the School of Business at Golden Gate University in San Francisco, where he has been teaching for twenty years. He is also the executive director of the Institute of Technical Market Analysis (ITMA). At Golden Gate, he developed the first accredited courses in technical market analysis in 1976. Since then, the curriculum has expanded to include advanced topics in technical analysis and trading. In his courses, Hank emphasizes the psychology of trading as well as the use of technical analysis methods, and he has published extensively in both areas. Hank is more than a theoretician. He has actively traded his own account for the past twenty years. His personal involvement in the market ensures that what he teaches is practical for the trader and not just abstract academic theory. Hank has coached institutional traders in the field of technical analysis for many years. He is presently on the board of directors of the Technical Securities Analysts Association of San Francisco and was formerly president of that association. Hank also sits on the board of directors of the Market Technicians Association (MTA). The MTA is the world’s leading association for the dissemination of technical analysis information. The MTA’s sister organization, the IFTA (International Federation of Technical Analysts), certifies analysts worldwide. Hank edits The Market Technicians Association Journal, the premier publication of technical analysts. From 1982 until 1993, he was a member of the board of trustees of Golden Gate University.
