Aspects of decision-making by the Trader in the financial market according to Contemporary Finance Theory
DOI:
https://doi.org/10.23925/2178-0080.2022v24i3.56318Keywords:
behavioral finance, traders, finance theory, market efficiency, decision makingAbstract
The Modern Theory of Finance proclaims that relative price adjustments are instantaneous with each new information generated by the environment in an efficient market. Any player cannot anticipate the others. Therefore, time is not considered a variable in this model. Professionals who notice a change of scenery just seconds in advance can position themselves to obtain superior performance, in addition to hummus economicus. In general, when making the decision, it is necessary to quickly identify in which pattern of occurrence of the event is placed. In this study, we will show that these professionals have better decision-making quality under stress, even outside their area of expertise. It seeks to demonstrate that both somatic markers, heuristics, and behavioral biases presented in the behavioral finance theory are substantively present in decision-making, influencing them.
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