Behavioural Finance - The Key to Better Trading Decisions

Dominant capital market theory is based on the assumption that all individuals act in a rational manner. It is assumed that utility maximisation is at the centre of action of every person and decisions are always made based on the full processing of all important information. Not only has the financial crisis caused changes in this thinking but it is now clear that former theories have to be adapted to reality and have to be reconsidered.

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