Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/27815
Authors: 
Heidorn, Thomas
Siragusano, Tindaro
Year of Publication: 
2004
Series/Report no.: 
Arbeitsberichte der Hochschule für Bankwirtschaft 52
Abstract: 
Behavioral finance theory is used for the foreign exchange market to show, that the profit of a typical trader is mainly due to the higher number of correct positions. Using behavioral finance the amount of loss trades is larger than 60%, however the individual gains are larger than the losses leading to an overall profit. Using this approach we show, that behavioral finance rules can be quantified and a trading outperformance is possible just using 24h spot rates and 3 day volatilities.
Subjects: 
behavioral finance
technical trading
foreign exchange market
FX
anchoring
regret avoidance
JEL: 
G12
G14
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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