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Emotions are psychological states brought on by neurophysiological changes, variously associated with thoughts, feelings, behavioural responses, and a degree of pleasure or displeasure. There is currently no scientific consensus on a definition. Emotions are often intertwined with mood, temperament, personality, disposition, creativity, and motivation.
In finance, technical analysis is an analysis methodology for forecasting the direction of prices through the study of past market data, primarily price and volume. Behavioral economics and quantitative analysis use many of the same tools of technical analysis, which, being an aspect of active management, stands in contradiction to much of modern portfolio theory. The efficacy of both technical and fundamental analysis is disputed by the efficient-market hypothesis, which states that stock market prices are essentially unpredictable, and research on whether technical analysis offers any benefit has produced mixed results. As such it has been described by many academics as pseudoscience.
Jealousy generally refers to the thoughts or feelings of insecurity, fear, and concern over a relative lack of possessions or safety.
Behavioral economics studies the effects of psychological, cognitive, emotional, cultural and social factors on the decisions of individuals and institutions and how those decisions vary from those implied by classical economic theory.
Psychology is an academic and applied discipline involving the scientific study of human mental functions and behavior. Occasionally, in addition or opposition to employing the scientific method, it also relies on symbolic interpretation and critical analysis, although these traditions have tended to be less pronounced than in other social sciences, such as sociology. Psychologists study phenomena such as perception, cognition, emotion, personality, behavior, and interpersonal relationships. Some, especially depth psychologists, also study the unconscious mind.
Empathy is the capacity to understand or feel what another person is experiencing from within their frame of reference, that is, the capacity to place oneself in another's position. Definitions of empathy encompass a broad range of emotional states. Types of empathy include cognitive empathy, emotional empathy, somatic, and spiritual empathy.
Greed and fear refer to two opposing emotional states theorized as factors causing the unpredictability and volatility of the stock market, and irrational market behavior inconsistent with the efficient-market hypothesis. Greed and fear relate to an old Wall Street saying: “financial markets are driven by two powerful emotions – greed and fear.”
Herd mentality, mob mentality and pack mentality, also lesser known as gang mentality, describes how people can be influenced by their peers to adopt certain behaviors on a largely emotional, rather than rational, basis. When individuals are affected by mob mentality, they may make different decisions than they would have individually.
Market timing is the strategy of making buying or selling decisions of financial assets by attempting to predict future market price movements. The prediction may be based on an outlook of market or economic conditions resulting from technical or fundamental analysis. This is an investment strategy based on the outlook for an aggregate market rather than for a particular financial asset.
Affective forecasting is the prediction of one's affect in the future. As a process that influences preferences, decisions, and behavior, affective forecasting is studied by both psychologists and economists, with broad applications.
A hot-cold empathy gap is a cognitive bias in which people underestimate the influences of visceral drives on their own attitudes, preferences, and behaviors.
Neuromarketing is a commercial marketing communication field that applies neuropsychology to market research, studying consumers' sensorimotor, cognitive, and affective response to marketing stimuli. The potential benefits to marketers include more efficient and effective marketing campaigns and strategies, fewer product and campaign failures, and ultimately the manipulation of the real needs and wants of people to suit the needs and wants of marketing interests.
A stock trader or equity trader or share trader is a person or company involved in trading equity securities. Stock traders may be an agent, hedger, arbitrageur, speculator, or stockbroker. Such equity trading in large publicly traded companies may be through a stock exchange. Stock shares in smaller public companies may be bought and sold in over-the-counter (OTC) markets.
Affect, in psychology, refers to the underlying experience of feeling, emotion or mood.
Psychological resilience is the ability to mentally or emotionally cope with a crisis or to return to pre-crisis status quickly. Resilience exists when the person uses "mental processes and behaviors in promoting personal assets and protecting self from the potential negative effects of stressors". In simpler terms, psychological resilience exists in people who develop psychological and behavioral capabilities that allow them to remain calm during crises/chaos and to move on from the incident without long-term negative consequences.
Appraisal theory is the theory in psychology that emotions are extracted from our evaluations of events that cause specific reactions in different people. Essentially, our appraisal of a situation causes an emotional, or affective, response that is going to be based on that appraisal. An example of this is going on a first date. If the date is perceived as positive, one might feel happiness, joy, giddiness, excitement, and/or anticipation, because they have appraised this event as one that could have positive long-term effects, i.e. starting a new relationship, engagement, or even marriage. On the other hand, if the date is perceived negatively, then our emotions, as a result, might include dejection, sadness, emptiness, or fear. Reasoning and understanding of one's emotional reaction becomes important for future appraisals as well. The important aspect of the appraisal theory is that it accounts for individual variability in emotional reactions to the same event.
In psychology, personal distress is an aversive, self-focused emotional reaction to the apprehension or comprehension of another's emotional state or condition. This negative affective state often occurs as a result of emotional contagion when there is confusion between self and other. Unlike empathy, personal distress does not have to be congruent with the other's state, and often leads to a self-oriented, egoistic reaction to reduce it, by withdrawing from the stressor, for example, thereby decreasing the likelihood of prosocial behavior. There is evidence that sympathy and personal distress are subjectively different, have different somatic and physiological correlates, and relate in different ways to prosocial behavior.
Emotion can have a powerful effect on humans and animals. Numerous studies have shown that the most vivid autobiographical memories tend to be of emotional events, which are likely to be recalled more often and with more clarity and detail than neutral events.
Individual psychological assessment (IPA) is a tool used by organizations to make decisions on employment. IPA allows employers to evaluate and maintain potential candidates for hiring, promotion, and development by using a series of job analysis instruments such as position analysis questionnaires (PAQ), occupational analysis inventory (OAI), and functional job analysis (FJA). These instruments allow the assessor to develop valid measures of intelligence, personality tests, and a range of other factors as means to determine selection and promotion decisions. Personality and cognitive ability are good predictors of performance. Emotional Intelligence helps individuals navigate through challenging organizational and interpersonal encounters. Since individual differences have a long history in explaining human behavior and the different ways in which individuals respond to similar events and circumstances, these factors allow the organization to determine if an applicant has the competence to effectively and successfully do the work that the job requires. These assessments are administered throughout organizations in different forms, but they share one common goal in the selection process, and that is the right candidate for the job.
In psychology of art, the relationship between art and emotion has newly been the subject of extensive study thanks to the intervention of esteemed art historian Alexander Nemerov. Emotional or aesthetic responses to do art have previously been viewed as basic stimulus response, but new theories and research have suggested that these experiences are more complex and able to be studied experimentally. Emotional responses are often regarded as the keystone to experiencing art, and the creation of an emotional experience has been argued as the purpose of artistic expression. Research has shown that the neurological underpinnings of perceiving art differ from those used in standard object recognition. Instead, brain regions involved in the experience of emotion and goal setting show activation when viewing art.