{"id":2904,"date":"2022-02-13T10:56:32","date_gmt":"2022-02-13T10:56:32","guid":{"rendered":"https:\/\/www.joaquinlopezpascual.com\/investment-decisions-facts-and-emotions\/"},"modified":"2022-02-13T10:56:34","modified_gmt":"2022-02-13T10:56:34","slug":"investment-decisions-facts-and-emotions","status":"publish","type":"post","link":"https:\/\/www.joaquinlopezpascual.com\/en\/investment-decisions-facts-and-emotions\/","title":{"rendered":"Investment decisions, facts and emotions"},"content":{"rendered":"\n

Every human being, if he wants to, can be a sculptor of his own brain.<\/h2>\n\n

It is stated that investment decision making<\/strong> should be based on rational analyzes based on facts and not on emotions<\/strong> .<\/p>\n\n

However, trying to make money on market forecasts can trigger all kinds of emotional responses.<\/p>\n\n

As the question of how investors decide remains controversial, we conducted an activation probability estimation (ALE) meta-analysis<\/strong> using functional magnetic resonance imaging (fMRI) studies through brain scanning in subjects performing tasks related to investment decisions<\/strong> . <\/p>\n\n

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Trying to make sense of all the information<\/strong> transmitted by the financial markets by<\/strong> listening to one’s own emotions<\/strong> without being overwhelmed by them implies a coordinated effort of various areas of the brain to reach a decision<\/strong> .<\/p>\n\n

Since the question of how investors<\/strong> make decisions has not yet been fully discovered, it is important to highlight the importance of meta<\/strong> -analysis about the convergence of brain regions necessary for this complex decision-making process<\/strong> .<\/p>\n\n

Investment decisions<\/strong> involve limbic areas that weigh reward against risk<\/strong> , as investment portfolios are based on trying to strike an optimal balance between return and risk. <\/p>\n\n

The emotions towards these two concepts, and the emotional conflicts that can arise when prioritizing between them, are an influential factor that guides this decision process<\/strong> .<\/p>\n\n

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When to buy or sell<\/h2>\n\n

<\/p>\n\n

In the stock market<\/strong> , things like when to buy or sell, market conditions, or even the way other investors behave can affect whether or not an investment will pay off.<\/p>\n\n

As Warren Buffet<\/strong> once warned: \n\" Be afraid when others are greedy and greedy when others are afraid<\/strong><\/em> .\"<\/pre>\n\n
Every investor<\/strong> knows how to be fearful and greedy, but what you really need to figure out is when the time is right. <\/strong>to be one or the other.<\/p>\n\n
The same investment behavior<\/strong> and brain activation could lead to different returns from<\/strong> time to time.<\/p>\n\n
Specific area of the brain<\/h2>\n\n
Determining the role of a specific area of the brain<\/strong> in this decision-making process is indeed a complicated task.<\/p>\n\n
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More information:<\/h2>\n\n
I leave at your disposal these interesting articles as a result of collaboration, in the field of Economics<\/em><\/strong> , psychology<\/em><\/strong> and neuroscience<\/em><\/strong> , that is, in the field of NEUROECONOMY<\/strong> :<\/p>\n\n
Connectivity adaptations in dopaminergic systems define the brain maturity of investors<\/em><\/strong><\/p>\n\n
https:\/\/www.mdpi.com\/2076-3425\/11\/3\/399\/htm<\/a><\/p>\n\n
An ALE Meta-Analysis on Investment Decision-Making<\/em><\/strong><\/p>\n\n
https:\/\/www.mdpi.com\/2076-3425\/11\/3\/399<\/a><\/p>\n\n
Neural implications of investment banking experience in decision-making under risk and ambiguity<\/em><\/strong><\/p>\n\n
https:\/\/psycnet.apa.org\/PsycARTICLES\/journal\/npe\/12\/1<\/a><\/p>\n\n
\"Every human being, if he wants to, can be a sculptor of his own brain.\" \n(Santiago Ramon y Cajal) <\/strong><\/pre>\n\n
You will find teaching material\/educational videos<\/strong> on Neuroeconomics<\/strong> on this website, accessing: <\/p>\n\n
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Videos Educativos<\/a><\/blockquote>