個案資料

People can be irrational in the financial market setting, leading to catastrophic mistakes and costing millions of dollars. We tend to take credit for our successes but disown our failures. We have limited powers of attention, preventing us from noticing critical factors in investment analysis. Memories can lead to faulty assumptions that serve as the foundation for financial decisions. Emotions often lead to giving inappropriate weight to some factors while discounting others. Researchers have discovered over 100 predictable biases that lead people to make consistent errors. The chapters cover financial biases most relevant to investing, evidence of how they develop, and practical strategies that can help investors improve their performance by minimizing bias's negative influence. This book offers readers a guide to cognitive bias as it occurs in real financial situations and to categorizing the different biases based on fundamental brain science while emphasizing practical implications of financial decision making and providing a scientific basis for adjusting investment practices to avoid cognitive traps. This chapter describes modes of thinking and the brain. Three modes of thinking that are key to investing are instinct, intuition, and reasoning, each of which is supported by different brain networks. The amygdala supports instinct; the default mode network and basal ganglia support intuition; the task network (external thinking), default mode network (internal thinking), and areas specialized in language, perception, and memory support reason. However, context is extremely important in determining which mode of thinking will be used in a specific situation. When reason is not used and intuition and instinct are relied on too much, we develop cognitive biases.

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